ITC HOTELS LIMITED Valuation

ITCHOTELS · Consumer Services · Current price ₹161.2

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DocStoX fair value
₹108
low confidence
Current price
₹161
Upside
-33.2%
P/E ratio
41.1x
P/B ratio
3.2x
Verdict
Avoid
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Is ITC HOTELS LIMITED undervalued?

DocStoX estimates the fair value of ITC HOTELS LIMITED at ₹108 per share, versus the current market price of ₹161. That puts the stock about -33.2% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 4 independent methods: Residual income (₹53), Relative P/E (₹155), Graham floor (₹70), Analyst target (₹214). 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 ₹53 (bear) to ₹108 (base) to ₹214 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

ITC HOTELS LIMITED trades at a P/E of 41.1x and a P/B of 3.2x, with a dividend yield of 0.6%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on ITC HOTELS LIMITED

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.