NEWGEN SOFTWARE TECH LTD Fair Value
NEWGEN · Information Technology · Current price ₹532.6
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹177 | 20% ROE fading to 12% over ~10 yrs, on ₹125 book |
| Relative P/E | ₹481 | EPS × 22.8 peer-median P/E |
| Graham floor | ₹244 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹615 | Street consensus 12-month target price |
Is NEWGEN SOFTWARE TECH LTD undervalued?
DocStoX estimates the fair value of NEWGEN SOFTWARE TECH LTD at ₹334 per share, versus the current market price of ₹533. That puts the stock about -37.2% 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 4 independent methods: Residual income (₹177), Relative P/E (₹481), Graham floor (₹244), Analyst target (₹615). 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 ₹177 (bear) to ₹334 (base) to ₹615 (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 NEWGEN SOFTWARE TECH 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.