LEMON TREE HOTELS LTD Fair Value
LEMONTREE · Consumer Services · Current price ₹105.8
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹20 | 19% ROE fading to 12% over ~3 yrs, on ₹18 book |
| Relative P/E | ₹113 | EPS × 39.5 peer-median P/E |
| Graham floor | ₹34 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹149 | Street consensus 12-month target price |
Is LEMON TREE HOTELS LTD undervalued?
DocStoX estimates the fair value of LEMON TREE HOTELS LTD at ₹66 per share, versus the current market price of ₹106. That puts the stock about -37.2% 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 (₹20), Relative P/E (₹113), Graham floor (₹34), Analyst target (₹149). 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 ₹20 (bear) to ₹66 (base) to ₹149 (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 LEMON TREE HOTELS 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.