IRB Infrastructure Developers Limited Intrinsic Value
IRB · Construction · Current price ₹17.63
Is IRB Infrastructure Developers Limited undervalued?
We estimate the fair value of IRB Infrastructure Developers Limited at ₹15 per share, against a market price of ₹20. That puts the share price about -23.6% above our estimate, at low 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) (₹13), Fair multiple (P/E) (₹25). 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 IRB Infrastructure Developers Limited spans ₹13 to ₹17. That range is wide, which is the honest signal here: read the range rather than the single number. 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 ₹20 against an estimated value of ₹15, IRB Infrastructure Developers Limited trades at -23.6%, i.e. a premium 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 IRB Infrastructure Developers Limited. Nothing here is a target price or a forecast of where the share price will go.
The inputs are thin or the models disagree sharply. This is our least reliable kind of estimate, so read the range rather than the single number.
Estimate range ₹13 – ₹17
Why this method for this business
The DCF model is appropriate for a capital-intensive construction company with predictable cash flows, while EV/EBITDA and relative P/E provide market-based benchmarks for valuation.
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
- Discounted cash flow (2-stage) is already used as the primary model, but we refine it with EV/EBITDA and relative P/E for a more balanced view.
What was missing
- Lack of forward EPS estimates
- Limited analyst coverage for precise multiple normalization
- Insufficient historical data on debt-to-equity ratios for capital structure analysis
What drives it
27 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 1,065 ₹cr
- Net debt
- 20,027 ₹cr
- Sector-median P/E
- 23.22×
- Peers used
- 16
- EPS (TTM)
- 0.79 ₹/share
- Own-history median P/E
- 41.92×
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
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)
- 4.87%
- Stage-1 years
- 8 y
pat_cagr_5y
lifecycle Mature
macro terminal × quality premium
lifecycle Mature horizon
- Lifecycle stage
- Mature
- Quality premium
- 0.975×
- Term: quality
- -5.3%
- Term: growth
- +20.2%
- Term: capital_allocation
- -7.0%
- Term: financial_strength
- +2.1%
- Term: history
- +24.1%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
forecast engine (L20)
moat None + capital allocation
quality 44/100 (weak/erratic returns) → discount
durable ~28% CAGR (ROCE 9% < 12% hurdle (growth not value-accretive)) → premium
capital allocation: falling ROCE / weak cash generation → discount
financial strength: low leverage (D/E 0.7) → mild premium
history: market paid +81% 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
- 0.523
- Premium vs sector
- +35.8%
- Fair-multiple confidence
- 80%
- Fair P/E
- 31.54×
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 IRB Infrastructure Developers 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 IRB Infrastructure Developers Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.