Divi's Laboratories Limited DCF Valuation
DIVISLAB · Healthcare · Current price ₹9,144.5
Divi's Laboratories Limited cash-flow valuation
Our discounted cash flow (2-stage) values Divi's Laboratories Limited at ₹135 per share. implied value is <0.2× the price (likely a data error). A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Divi's Laboratories Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Divi's Laboratories Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹3,806 – ₹4,652
Why this method for this business
Relative P/E is appropriate for a pharmaceutical company with a durable moat and stable earnings power. DCF complements it by capturing intrinsic value, especially with a strong ROE and capital-light operations.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
- ev_ebitda is not suitable for a pharmaceutical company with a strong moat and stable cash flows
- dcf is not rejected as it provides a complementary view to the relative P/E
What was missing
- Lack of forward EPS estimates for certain periods
- Limited analyst coverage for specific models
What drives it
15 inputs, grouped by how strong each claim is
- Sector-median P/E
- 29.45×
- Peers used
- 10
- EPS (TTM)
- 110.18 ₹/share
- Own-history median P/E
- 48.47×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Term: quality
- +3.8%
- Term: growth
- -2.5%
- Term: capital_allocation
- -3.0%
- Term: financial_strength
- +10.0%
- Term: history
- +19.4%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 70/100 (high, stable returns) → premium (ROCE deteriorating → premium halved)
weak ~7% CAGR (ROCE 25% > hurdle) → discount
capital allocation: falling ROCE / weak cash generation → discount
financial strength: effectively debt-free → premium
history: market paid +65% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +30.3%
- Fair-multiple confidence
- 82%
- Fair P/E
- 38.38×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Divi's Laboratories Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Divi's Laboratories Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.