The Great Eastern Shipping Company Limited Fair Value
GESHIP · Services · Current price ₹1,473.5
Is The Great Eastern Shipping Company Limited undervalued?
We estimate the fair value of The Great Eastern Shipping Company Limited at ₹2,416 per share, against a market price of ₹1,412. That puts the share price about +71.1% below our estimate, at medium 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 2 methods: Discounted cash flow (2-stage) (₹2,248), Fair multiple (P/E) (₹2,958). 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 The Great Eastern Shipping Company Limited spans ₹2,174 to ₹2,958. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
How we got this fair value
Every number below is part of the same estimate for The Great Eastern Shipping Company Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹2,174 – ₹2,958
Why this method for this business
The DCF model is appropriate for a shipping company with stable cash flows and a clear discount rate. The relative PE model is suitable for comparing with peers in the same sector.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path
- residual_income: Not suitable for a capital-intensive business like shipping where book value is not a good proxy for intrinsic value.
What was missing
- Lack of detailed information on the company's capital allocation strategy
- Limited data on the impact of global trade dynamics on the company's performance
What drives it
28 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 2,024 ₹cr
- Net debt
- -3,249.9 ₹cr
- Sector-median P/E
- 14.73×
- Peers used
- 3
- EPS (TTM)
- 262.44 ₹/share
- Own-history median P/E
- 5.67×
fcf_norm (median ≤5y positive)
total_debt − cash
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Discount rate (r)
- 14.4%
- Beta
- 1
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 14%
- Fade shape
- linear
- Terminal growth (g)
- 5.41%
- Stage-1 years
- 9 y
pat_cagr_5y
lifecycle Mature
macro terminal × quality premium
lifecycle Mature horizon
- Lifecycle stage
- Mature
- Quality premium
- 1.082×
- Anchor correction
- peer anchor 14.7x diverges 0.4x from 7yr own-history 5.7x (no size-comparable peer) — anchor blended 0.6 toward own-history → 9.3x
- Term: quality
- -2.3%
- Term: growth
- +10.2%
- Term: capital_allocation
- +15.0%
- Term: financial_strength
- +9.7%
- Term: history
- -11.7%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
forecast engine (L20)
moat Narrow + capital allocation
peer-anchor mismatch — deep own-history used instead
quality 50/100 (weak/erratic returns) → discount
durable ~18% CAGR (ROCE 9% < 12% hurdle (growth not value-accretive)) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: effectively debt-free → premium
history: market paid -39% vs sector, dampened ×0.3 (one feature, not the anchor)
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)
- Path
- FCFE
- Terminal-value fraction
- 0.506
- Premium vs sector
- +21.3%
- Fair-multiple confidence
- 69%
- Fair P/E
- 11.27×
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
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 The Great Eastern Shipping Company 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 The Great Eastern Shipping Company Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.