LG Electronics India Limited Intrinsic Value
LGEINDIA · Consumer Durables · Current price ₹1,718.8
Is LG Electronics India Limited undervalued?
We estimate the fair value of LG Electronics India Limited at ₹1,185 per share, against a market price of ₹1,637. That puts the share price about -27.6% above our estimate, at high confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Fair multiple (P/E) (₹1,185). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for LG Electronics India Limited spans ₹1,066 to ₹1,303. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Margin of safety
Value investors look for a margin of safety: a discount to estimated value that absorbs being wrong. At ₹1,637 against an estimated value of ₹1,185, LG Electronics India Limited trades at -27.6%, i.e. a premium to our estimate. How much margin to demand depends on how much you trust the inputs, which is what the confidence band below is for.
How we got this fair value
Every number below is part of the same estimate for LG Electronics India Limited. Nothing here is a target price or a forecast of where the share price will go.
The models agree and the inputs are well covered. Treat this as our firmest estimate.
Estimate range ₹1,066 – ₹1,303
Why this method for this business
Relative P/E and PEG are appropriate for an asset-light, consumer discretionary business with strong earnings power and a durable moat. DCF is not suitable due to the lack of reliable cash flow patterns and the sensitivity of the valuation to discount rates.
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 consumer discretionary business with erratic cash flow patterns and high sensitivity to discount rates
What was missing
- Lack of historical P/E data for the company
- Limited analyst coverage for forward-looking estimates
What drives it
14 inputs, grouped by how strong each claim is
- Sector-median P/E
- 33.8×
- Peers used
- 13
- EPS (TTM)
- 26.89 ₹/share
peer-median
peer-median
computed
- Term: quality
- +7.0%
- Term: growth
- -4.7%
- Term: capital_allocation
- +15.0%
- Term: financial_strength
- +9.8%
- Term: history
- +0.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 69/100 (high, stable returns) → premium
weak ~6% CAGR (ROCE 36% > hurdle) → discount
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: effectively debt-free → premium
history: no reliable own-history P/E → not used
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
- +30.4%
- Fair-multiple confidence
- 58%
- Fair P/E
- 44.06×
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 LG Electronics India 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 LG Electronics India Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.