HINDUSTAN UNILEVER LTD. Valuation
HINDUNILVR · Fast Moving Consumer Goods · Current price ₹1,893.8
Is HINDUSTAN UNILEVER LTD. undervalued?
We estimate the fair value of HINDUSTAN UNILEVER LTD. at ₹778 per share, against a market price of ₹1,927. That puts the share price about -59.6% above our estimate, at high 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) (₹747), PEG (growth-implied P/E) (₹896). 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 HINDUSTAN UNILEVER LTD. spans ₹700 to ₹896. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Valuation multiples
HINDUSTAN UNILEVER LTD. trades at a P/E of 29.6x and a P/B of 9.3x, with a dividend yield of 2.1%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
How we got this fair value
Every number below is part of the same estimate for HINDUSTAN UNILEVER LTD.. Nothing here is a target price or a forecast of where the share price will go.
The models agree and the inputs are well covered. Treat this as our firmest estimate.
Estimate range ₹700 – ₹896
Why this method for this business
Hindustan Unilever is an asset-light compounder in the FMCG sector, where earnings power and a durable moat are key. DCF and PEG are the most appropriate models for valuing a business with stable, predictable cash flows and a strong competitive position.
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
- relative_pe is not suitable for an asset-light compounder with a wide moat; it would overvalue the business based on a flawed multiple
What was missing
- Lack of detailed information on specific segment performance
- Limited forward-looking data on pricing power and cost trends
What drives it
15 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 9,251 ₹cr
- Net debt
- 1,292 ₹cr
- Earnings growth
- 14.1% CAGR
- EPS (TTM)
- 63.66 ₹/share
fcf_norm (median ≤5y positive)
total_debt − cash
computed
computed
- Discount rate (r)
- 12.9%
- Beta
- 0.8
COE (building-block)
bottom-up industry
- Stage-1 start growth
- 10%
- Fade shape
- gentle
- Terminal growth (g)
- 5.5%
- Stage-1 years
- 14 y
pat_cagr_5y
lifecycle Cash-Cow
macro terminal × quality premium
lifecycle Cash-Cow horizon
- Lifecycle stage
- Cash-Cow
- Quality premium
- 1.1×
forecast engine (L20)
moat Wide + capital allocation
- Path
- FCFE
- Terminal-value fraction
- 0.421
- Growth-implied P/E
- 14.1×
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
min(growth, 30)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for HINDUSTAN UNILEVER LTD.: 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 methodologyUnderstand the ratios
More on HINDUSTAN UNILEVER LTD.
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.