Muthoot Microfin Limited DCF Valuation
MUTHOOTMF · Financial Services · Current price ₹174.76
Muthoot Microfin Limited cash-flow valuation
Our residual income (excess return on book) values Muthoot Microfin Limited at ₹149 per share. Book value plus the present value of returns earned above the 10.6% cost of equity. It carries 70% of the weight in our published estimate of ₹173. A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Muthoot Microfin Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Muthoot Microfin Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹149 – ₹222
Why this method for this business
Residual income and relative P/B are the most appropriate models for a microfinance institution, as they reflect the capital-intensive nature of the business and the importance of book value and peer comparisons.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Book value plus the present value of returns earned above the 10.6% cost of equity
- justified_pb is rejected due to its low implied value relative to current price
- DCF is not used as it is not suitable for a capital-intensive NBFC
What was missing
- Lack of forward EBITDA estimates
- Limited peer data for precise P/B comparisons
What drives it
8 inputs, grouped by how strong each claim is
- ROE (normalized)
- 6.2%
- Book value / share
- 167.8 ₹
- Peer-median P/B
- 1.32×
- Peers used
- 417
- Book value / share
- 167.77 ₹/share
computed
reported
peer-median
peer-median
computed
- Cost of equity
- 10.6%
building-block
- Moat
- None
- Excess-return horizon
- 3 yrs
computed
computed
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Muthoot Microfin 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 15 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 Muthoot Microfin Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.