GUJARAT ENERGY LIMITED Intrinsic Value
GUJENERGY · Oil, Gas & Consumable Fuels · Current price ₹223.5
Is GUJARAT ENERGY LIMITED undervalued?
We estimate the fair value of GUJARAT ENERGY LIMITED at ₹291 per share, against a market price of ₹242. That puts the share price about +20.5% 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 1 method: Fair multiple (P/E) (₹291). 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 GUJARAT ENERGY LIMITED spans ₹262 to ₹320. 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 ₹242 against an estimated value of ₹291, GUJARAT ENERGY LIMITED trades at +20.5%, i.e. a discount 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 GUJARAT ENERGY 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 ₹262 – ₹320
Why this method for this business
The business is capital-intensive and has stable cash flows, making EV/EBITDA and relative P/E the most appropriate models for valuation.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
required inputs missing
- dcf: Not suitable for a capital-intensive business with uncertain cash flows
- relative_pe: Already included as a primary model
What was missing
- Lack of historical P/E data for precise multiple normalization
- Limited analyst coverage for forward estimates
What drives it
14 inputs, grouped by how strong each claim is
- Sector-median P/E
- 13.71×
- Peers used
- 4
- EPS (TTM)
- 14.91 ₹/share
peer-median
peer-median
computed
- Term: quality
- +0.5%
- Term: growth
- +17.6%
- Term: capital_allocation
- +9.3%
- Term: financial_strength
- +8.9%
- Term: history
- +0.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 56/100 (about average) → neutral
durable ~12% CAGR (ROCE 20% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: low leverage (D/E 0.2) → mild 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
- +42.5%
- Fair-multiple confidence
- 58%
- Fair P/E
- 19.53×
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 GUJARAT ENERGY 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 GUJARAT ENERGY LIMITED
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.