FERMENTA BIOTECH LTD. Valuation

FERMENTA · Healthcare · Current price ₹496.7

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DocStoX fair value
₹335
low confidence
Current price
₹497
Upside
-32.6%
P/E ratio
20.4x
P/B ratio
2.6x
Verdict
Avoid
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Is FERMENTA BIOTECH LTD. undervalued?

DocStoX estimates the fair value of FERMENTA BIOTECH LTD. at ₹335 per share, versus the current market price of ₹497. That puts the stock about -32.6% 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 3 independent methods: Residual income (₹149), Relative P/E (₹740), Graham floor (₹275). 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 ₹149 (bear) to ₹335 (base) to ₹740 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

FERMENTA BIOTECH LTD. trades at a P/E of 20.4x and a P/B of 2.6x, with a dividend yield of 0.8%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on FERMENTA BIOTECH 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.