GAIL (INDIA) LTD Valuation

GAIL · Oil Gas & Consumable Fuels · Current price ₹171.2

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DocStoX fair value
₹149
medium confidence
Current price
₹171
Upside
-12.9%
P/E ratio
14.8x
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 ₹149 per share, versus the current market price of ₹171. That puts the stock about -12.9% 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 3 independent methods: Residual income (₹128), Relative P/E (₹158), Graham floor (₹187). 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 ₹127 (bear) to ₹149 (base) to ₹187 (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 14.8x and a P/B of 1.3x, with a dividend yield of 2.9%. 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.