Dr Agarwals Eye Hospital Limited Intrinsic Value
DRAGARWQ · Healthcare · Current price ₹5,170
Is Dr Agarwals Eye Hospital Limited undervalued?
We estimate the fair value of Dr Agarwals Eye Hospital Limited at ₹5,833 per share, against a market price of ₹5,307. That puts the share price about +9.9% below our estimate, at low confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 2 methods: Fair multiple (P/E) (₹4,429), Residual income (excess return on book) (₹7,237). These methods disagree materially, so the estimate is their midpoint rather than a weighted blend, and the disagreement is part of the finding. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Dr Agarwals Eye Hospital Limited spans ₹4,429 to ₹7,237. That range is wide, which is the honest signal here: read the range rather than the single number. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Margin of safety
Value investors look for a margin of safety: a discount to estimated value that absorbs being wrong. At ₹5,307 against an estimated value of ₹5,833, Dr Agarwals Eye Hospital Limited trades at +9.9%, i.e. a discount to our estimate. How much margin to demand depends on how much you trust the inputs, which is what the confidence band below is for.
How we got this fair value
Every number below is part of the same estimate for Dr Agarwals Eye Hospital Limited. Nothing here is a target price or a forecast of where the share price will go.
The inputs are thin or the models disagree sharply. This is our least reliable kind of estimate, so read the range rather than the single number.
Estimate range ₹4,429 – ₹7,237
Why this method for this business
The relative P/E and residual income models are most appropriate for a healthcare services business with a durable moat and strong earnings power. These models capture the value of the brand and the ability to generate excess returns over time.
The models behind the number
These methods disagree materially, so the estimate is their plain midpoint rather than a weighted blend. The disagreement is itself the finding.
Book value plus the present value of returns earned above the 10.6% cost of equity
- dcf: Not suitable for a non-cyclical, asset-light business with strong brand equity and consistent earnings growth.
What was missing
- Lack of forward-looking analyst estimates for more precise modeling
- Limited historical P/E data for the sector to refine the multiple
What drives it
19 inputs, grouped by how strong each claim is
- Sector-median P/E
- 22×
- Peers used
- 3
- EPS (TTM)
- 157.72 ₹/share
- ROE (normalized)
- 33.9%
- Book value / share
- 444 ₹
peer-median
peer-median
computed
computed
reported
- Cost of equity
- 10.6%
building-block
- Term: quality
- +0.1%
- Term: growth
- +40.0%
- Term: capital_allocation
- -7.1%
- Term: financial_strength
- -3.1%
- Term: history
- +0.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
- Moat
- Wide
- Excess-return horizon
- 20 yrs
quality 55/100 (about average) → neutral (ROCE deteriorating → premium halved)
durable ~18% CAGR (ROCE 19% > hurdle) → premium
capital allocation: falling ROCE / weak cash generation → discount
financial strength: high leverage (D/E 1.6) → discount
history: no reliable own-history P/E → not used
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)
computed
computed
- Premium vs sector
- +27.6%
- Fair-multiple confidence
- 49%
- Fair P/E
- 28.08×
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 Dr Agarwals Eye Hospital 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 15 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 Dr Agarwals Eye Hospital Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.