Fractal Analytics Limited Intrinsic Value
FRACTAL · Information Technology · Current price ₹735.65
Is Fractal Analytics Limited undervalued?
We estimate the fair value of Fractal Analytics Limited at ₹638 per share, against a market price of ₹764. That puts the share price about -16.5% above our estimate, at high 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 1 method: Fair multiple (P/E) (₹638). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Fractal Analytics Limited spans ₹574 to ₹701. 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 ₹764 against an estimated value of ₹638, Fractal Analytics Limited trades at -16.5%, i.e. a premium 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 Fractal Analytics Limited. Nothing here is a target price or a forecast of where the share price will go.
The models agree and the inputs are well covered. Treat this as our firmest estimate.
Estimate range ₹574 – ₹701
Why this method for this business
Fractal Analytics is an asset-light IT services firm with durable earnings power and a wide moat. Relative P/E and EV/EBITDA are the most appropriate models for valuing such a business, as they reflect earnings power and cash flow generation.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
required inputs missing
- dcf is not suitable for IT services due to high growth uncertainty and non-cyclical nature
- ev_ebitda is not used as a primary model due to limited data quality in the input
What was missing
- Limited historical EBITDA data for EV/EBITDA normalization
- Insufficient forward estimates for DCF modeling
What drives it
14 inputs, grouped by how strong each claim is
- Sector-median P/E
- 23×
- Peers used
- 11
- EPS (TTM)
- 21.1 ₹/share
peer-median
peer-median
computed
- Term: quality
- -8.0%
- Term: growth
- +33.0%
- Term: capital_allocation
- -0.4%
- Term: financial_strength
- +6.5%
- Term: history
- +0.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 39/100 (weak/erratic returns) → discount
durable ~41% CAGR (ROCE 4% < 12% hurdle (growth not value-accretive)) → premium
capital allocation: steady → neutral
financial strength: effectively debt-free → premium
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)
- Premium vs sector
- +31.4%
- Fair-multiple confidence
- 56%
- Fair P/E
- 30.22×
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 Fractal Analytics 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 Fractal Analytics Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.