Panacea Biotec Limited Intrinsic Value
PANACEABIO · Healthcare · Current price ₹354
Is Panacea Biotec Limited undervalued?
We estimate the fair value of Panacea Biotec Limited at ₹150 per share, against a market price of ₹398. That puts the share price about -62.3% above our estimate, at low confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Discounted cash flow (2-stage) (₹150). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for Panacea Biotec Limited spans ₹135 to ₹165. That range is wide, which is the honest signal here: read the range rather than the single number. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Margin of safety
Value investors look for a margin of safety: a discount to estimated value that absorbs being wrong. At ₹398 against an estimated value of ₹150, Panacea Biotec Limited trades at -62.3%, i.e. a premium to our estimate. How much margin to demand depends on how much you trust the inputs, which is what the confidence band below is for.
How we got this fair value
Every number below is part of the same estimate for Panacea Biotec Limited. Nothing here is a target price or a forecast of where the share price will go.
The inputs are thin or the models disagree sharply. This is our least reliable kind of estimate, so read the range rather than the single number.
Estimate range ₹135 – ₹165
Why this method for this business
EV/Sales and DCF are the most appropriate models for a pharmaceutical company with a narrow moat and uncertain earnings trajectory. EV/Sales provides a revenue-based valuation, while DCF captures the intrinsic value of the business.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFF path
required inputs missing
- Discounted cash flow (2-stage) is not used as a standalone model due to the lack of forward-looking data and the company's loss-making status. EV/EBITDA is excluded due to negative EBITDA in recent years.
What was missing
- Forward-looking financial data
- Detailed information on the company's cost structure and operational efficiency
What drives it
12 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 64 ₹cr
- Net debt
- -33.3 ₹cr
fcf_norm (median ≤5y positive)
total_debt − cash
- Discount rate (r)
- 13.25%
- Beta
- 0.85
WACC (computed)
bottom-up industry
- Stage-1 start growth
- 8%
- Fade shape
- linear
- Terminal growth (g)
- 4.94%
- Stage-1 years
- 8 y
lifecycle-floor
lifecycle Turnaround
macro terminal × quality premium
lifecycle Turnaround horizon
- Lifecycle stage
- Turnaround
- Quality premium
- 0.988×
forecast engine (L20)
moat None + capital allocation
- Path
- FCFF
- Terminal-value fraction
- 0.552
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Panacea Biotec 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 Panacea Biotec Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.