GAIL (INDIA) LTD Valuation

GAIL · Oil, Gas & Consumable Fuels · Current price ₹172.45

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DocStoX fair value
₹156
medium confidence
Current price
₹172
Upside
-9.6%
P/E ratio
15.0x
P/B ratio
1.3x
Verdict
Fairly Valued
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Is GAIL (INDIA) LTD undervalued?

DocStoX estimates the fair value of GAIL (INDIA) LTD at ₹156 per share, versus the current market price of ₹172. That puts the stock about -9.6% above our fair-value estimate, which we read as "Fairly Valued". Our confidence in this estimate is medium.

How this fair value is calculated

This estimate blends 4 independent methods: Residual income (₹128), Relative P/E (₹154), Graham floor (₹187), Analyst target (₹194). 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 ₹128 (bear) to ₹156 (base) to ₹194 (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

GAIL (INDIA) LTD trades at a P/E of 15.0x and a P/B of 1.3x, with a dividend yield of 3.2%. 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 GAIL (INDIA) 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.