eClerx Services Limited Fair Value
ECLERX · Services · Current price ₹1,951.1
Is eClerx Services Limited undervalued?
We estimate the fair value of eClerx Services Limited at ₹3,759 per share, against a market price of ₹1,900. That puts the share price about +97.9% 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 3 methods: Discounted cash flow (2-stage) (₹845), Fair multiple (P/E) (₹5,792), Residual income (excess return on book) (₹2,609). 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 eClerx Services Limited spans ₹1,880 to ₹4,135. 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.
How we got this fair value
Every number below is part of the same estimate for eClerx Services 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 ₹1,880 – ₹4,135
Why this method for this business
ECLERX is an asset-light compounder with durable earnings power and a wide moat, making DCF and relative PE models appropriate. Residual income is also relevant due to its book value and return on equity.
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.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path; kept despite sitting outside the ₹2609-median band — ₹2609 from another model is within 3.1×, so this is genuine disagreement, not a broken model; downweighted: 68% from committee consensus (₹2609)
downweighted: 122% from committee consensus (₹2609)
Book value plus the present value of returns earned above the 10.6% cost of equity
- Discounted cash flow (2-stage) is already used, but we refine it with a more conservative growth assumption. Residual income is used but downweighted due to its sensitivity to book value assumptions. Relative PE is used but with a quality premium applied to reflect the company's moat.
What was missing
- Lack of analyst dispersion data to refine multiple assumptions
- Limited forward EPS data beyond 2027
What drives it
32 inputs, grouped by how strong each claim is
- ROE (normalized)
- 27.2%
- Book value / share
- 272 ₹
- FCF_0 (normalized)
- 327 ₹cr
- Net debt
- 385 ₹cr
- Sector-median P/E
- 40.54×
- Peers used
- 3
- EPS (TTM)
- 77.22 ₹/share
- Own-history median P/E
- 40.87×
computed
reported
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Cost of equity
- 10.6%
- Discount rate (r)
- 14.4%
- Beta
- 1
building-block
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 20%
- Fade shape
- linear
- Terminal growth (g)
- 5.5%
- Stage-1 years
- 14 y
pat_cagr_5y
lifecycle Growth
macro terminal × quality premium
lifecycle Growth horizon
- Moat
- Wide
- Excess-return horizon
- 20 yrs
- Lifecycle stage
- Growth
- Quality premium
- 1.1×
- Term: quality
- +14.3%
- Term: growth
- +40.0%
- Term: capital_allocation
- +13.8%
- Term: financial_strength
- +8.7%
- Term: history
- +0.2%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
computed
computed
forecast engine (L20)
moat Wide + capital allocation
quality 84/100 (high, stable returns) → premium
durable ~21% CAGR (ROCE 32% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: low leverage (D/E 0.2) → mild premium
history: market paid +1% 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)
- Path
- FCFE
- Terminal-value fraction
- 0.394
- Premium vs sector
- +85.0%
- Fair-multiple confidence
- 79%
- Fair P/E
- 75×
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
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 eClerx Services 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 eClerx Services Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.