JK Paper Limited DCF Valuation
JKPAPER · Forest Materials · Current price ₹390
JK Paper Limited cash-flow valuation
Our discounted cash flow (2-stage) values JK Paper Limited at ₹162 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 ₹251. 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 JK Paper 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 JK Paper 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 ₹162 – ₹340
Why this method for this business
JK Paper operates in the commodities sector, which is cyclical, so DCF and relative PE are the most appropriate models. Residual income is less relevant due to the nature of the business.
The models behind the number
These methods disagree materially, so the estimate is their plain midpoint rather than a weighted blend. The disagreement is itself the finding.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFE path
- residual_income: Not suitable for a cyclical commodity business where earnings are volatile and not consistently high
What was missing
- Lack of forward EPS estimates for more precise DCF modeling
- Limited analyst coverage for relative PE normalization
What drives it
27 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 265 ₹cr
- Net debt
- 2,578 ₹cr
- Sector-median P/E
- 17.38×
- Peers used
- 7
- EPS (TTM)
- 17.9 ₹/share
- Own-history median P/E
- 9.49×
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
- 4.93%
- Fade shape
- linear
- Terminal growth (g)
- 4.93%
- Stage-1 years
- 8 y
pat_cagr_5y
lifecycle Mature
macro terminal × quality premium
lifecycle Mature horizon
- Lifecycle stage
- Mature
- Quality premium
- 0.986×
- Term: quality
- -2.5%
- Term: growth
- +15.5%
- Term: capital_allocation
- +5.3%
- Term: financial_strength
- +5.7%
- Term: history
- -13.6%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
forecast engine (L20)
moat None + capital allocation
quality 50/100 (weak/erratic returns) → discount
durable ~12% CAGR (ROCE 16% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: low leverage (D/E 0.4) → mild premium
history: market paid -45% 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
- 0.501
- Premium vs sector
- +9.4%
- Fair-multiple confidence
- 72%
- Fair P/E
- 19.01×
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 JK Paper 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 JK Paper Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.