MRF LTD Valuation
MRF · Automobile and Auto Components · Current price ₹1,30,695
Is MRF LTD undervalued?
DocStoX estimates the fair value of MRF LTD at ₹75,431 per share, versus the current market price of ₹1,30,695. That puts the stock about -42.3% 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 (₹49,455), Relative P/E (₹1,23,516), Graham floor (₹79,783). 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 ₹75,431 (base) to ₹1,23,516 (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
MRF LTD trades at a P/E of 22.9x and a P/B of 2.7x, with a dividend yield of 0.2%. 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 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.