EICHER MOTORS LTD Fair Value
EICHERMOT · Automobile and Auto Components · Current price ₹7,938
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹1,400 | 24% ROE fading to 13% over ~10 yrs, on ₹915 book |
| Relative P/E | ₹5,736 | EPS × 28.5 peer-median P/E |
| Graham floor | ₹2,035 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹8,461 | Street consensus 12-month target price |
Is EICHER MOTORS LTD undervalued?
DocStoX estimates the fair value of EICHER MOTORS LTD at ₹3,627 per share, versus the current market price of ₹7,938. That puts the stock about -54.3% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹1,400), Relative P/E (₹5,736), Graham floor (₹2,035), Analyst target (₹8,461). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹1,400 (bear) to ₹3,627 (base) to ₹8,461 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on EICHER MOTORS LTD
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.