LEMON TREE HOTELS LTD Valuation

LEMONTREE · Consumer Services · Current price ₹111.97

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DocStoX fair value
₹51
low confidence
Current price
₹112
Upside
-54.3%
P/E ratio
39.0x
P/B ratio
6.8x
Verdict
Avoid
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Is LEMON TREE HOTELS LTD undervalued?

DocStoX estimates the fair value of LEMON TREE HOTELS LTD at ₹51 per share, versus the current market price of ₹112. That puts the stock about -54.3% 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 3 independent methods: Residual income (₹22), Relative P/E (₹119), Graham floor (₹34). 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 ₹22 (bear) to ₹51 (base) to ₹119 (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

LEMON TREE HOTELS LTD trades at a P/E of 39.0x and a P/B of 6.8x, with a dividend yield of 0.0%. 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 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.