MRF LTD Fair Value
MRF · Automobile and Auto Components · Current price ₹1,32,180
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹49,455 | 13% ROE fading to 13% over ~3 yrs, on ₹49455 book |
| Relative P/E | ₹1,23,516 | EPS × 21.6 peer-median P/E |
| Graham floor | ₹79,783 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹1,37,345 | Street consensus 12-month target price |
Is MRF LTD undervalued?
DocStoX estimates the fair value of MRF LTD at ₹85,750 per share, versus the current market price of ₹1,32,180. That puts the stock about -35.1% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹49,455), Relative P/E (₹1,23,516), Graham floor (₹79,783), Analyst target (₹1,37,345). 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 ₹49,455 (bear) to ₹85,750 (base) to ₹1,37,345 (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 MRF 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.