Hindustan Oil Exploration Company Limited DCF Valuation
HINDOILEXP · Oil, Gas & Consumable Fuels · Current price ₹166
Hindustan Oil Exploration Company Limited cash-flow valuation
Our discounted cash flow (2-stage) values Hindustan Oil Exploration Company Limited at ₹63 per share. Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path. It carries 70% of the weight in our published estimate of ₹63. A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Hindustan Oil Exploration Company Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Hindustan Oil Exploration 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 ₹56 – ₹69
Why this method for this business
The DCF model is appropriate for oil and gas exploration, which is capital-intensive and has long-term cash flow potential. EV/EBITDA is also suitable as it captures the value of the company relative to its earnings, which is a key metric for energy firms.
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
required inputs missing
- Relative PE is not suitable for a capital-intensive industry with volatile earnings
- FCFE is not applicable due to the nature of the business and the lack of forward estimates
What was missing
- Forward estimates are not available to support a more detailed DCF analysis
- Lack of detailed information on future exploration projects
What drives it
12 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 71.5 ₹cr
- Net debt
- 50 ₹cr
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
- Discount rate (r)
- 14.4%
- Beta
- 1
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 5.33%
- Fade shape
- linear
- Terminal growth (g)
- 5.33%
- Stage-1 years
- 10 y
pat_cagr_5y
lifecycle Growth
macro terminal × quality premium
lifecycle Growth horizon
- Lifecycle stage
- Growth
- Quality premium
- 1.066×
forecast engine (L20)
moat Narrow + capital allocation
- Path
- FCFE
- Terminal-value fraction
- 0.438
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Hindustan Oil Exploration 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 15 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 Hindustan Oil Exploration Company Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.