ITC LTD Fair Value
ITC · Fast Moving Consumer Goods · Current price ₹266.3
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹116 | 29% ROE fading to 12% over ~20 yrs, on ₹58 book |
| Relative P/E | ₹771 | EPS × 46.7 peer-median P/E |
| Graham floor | ₹147 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹335 | Street consensus 12-month target price |
Is ITC LTD undervalued?
DocStoX estimates the fair value of ITC LTD at ₹310 per share, versus the current market price of ₹266. That puts the stock about +16.6% below our fair-value estimate, which we read as "Fairly Valued". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹116), Relative P/E (₹771), Graham floor (₹147), Analyst target (₹335). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.
Bear, base and bull scenarios
Our scenarios span ₹116 (bear) to ₹310 (base) to ₹771 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on ITC LTD
DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.