THE NEW INDIA ASSU CO LTD DCF Valuation
NIACL · Financial Services · Current price ₹179.5
THE NEW INDIA ASSU CO LTD cash-flow valuation
Our residual income (excess return on book) values THE NEW INDIA ASSU CO LTD at ₹125 per share. Book value plus the present value of returns earned above the 10.6% cost of equity. It carries 40% of the weight in our published estimate of ₹125. 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 THE NEW INDIA ASSU CO LTD'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 THE NEW INDIA ASSU CO LTD. 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 ₹112 – ₹138
Why this method for this business
The justified P/B model is appropriate for a general insurance company with a stable book value and a clear cost of equity. The residual income model complements this by capturing the excess returns on book value, which is relevant for a state-owned entity with a long-term focus.
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
implied value is <0.2× the price (likely a data error)
- relative_pb is rejected due to its high P/E multiple and lack of alignment with the industry's typical valuation range.
What was missing
- Lack of detailed forward EBITDA estimates
- Limited data on long-term growth assumptions
- Insufficient information on the company's capital structure and leverage
What drives it
5 inputs, grouped by how strong each claim is
- ROE (normalized)
- 4.1%
- Book value / share
- 149.4 ₹
computed
reported
- 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 THE NEW INDIA ASSU CO LTD: 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 THE NEW INDIA ASSU CO LTD
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.