Lemon Tree Hotels Limited DCF Valuation
LEMONTREE · Consumer Services · Current price ₹113.33
Lemon Tree Hotels Limited cash-flow valuation
Our residual income (excess return on book) values Lemon Tree Hotels Limited at ₹20 per share. implied value is <0.2× the price (likely a data error). 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 Lemon Tree Hotels 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 Lemon Tree Hotels Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹142 – ₹173
Why this method for this business
Relative P/E is appropriate for a mid-priced hotel chain with a narrow moat, while residual income captures the value of book value and return on equity.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
- dcf: Not suitable for a cyclical industry with uncertain cash flows
- normalized book value is not relevant for a hotel chain with high asset turnover
What was missing
- Lack of forward-looking analyst estimates for EBITDA and EPS
- Limited data on long-term growth prospects beyond 5 years
What drives it
15 inputs, grouped by how strong each claim is
- Sector-median P/E
- 37.98×
- Peers used
- 10
- EPS (TTM)
- 2.96 ₹/share
- Own-history median P/E
- 53.28×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Term: quality
- -6.0%
- Term: growth
- +5.4%
- Term: capital_allocation
- +15.0%
- Term: financial_strength
- +8.5%
- Term: history
- +12.1%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 43/100 (weak/erratic returns) → discount
durable ~13% CAGR (ROCE 5% < 12% hurdle (growth not value-accretive)) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: low leverage (D/E 0.2) → mild premium
history: market paid +40% 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)
- Premium vs sector
- +40.3%
- Fair-multiple confidence
- 83%
- Fair P/E
- 53.27×
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 Lemon Tree Hotels 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 Lemon Tree Hotels Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.