Paras Defence and Space Technologies Limited DCF Valuation
PARAS · Capital Goods · Current price ₹1,296.6
Paras Defence and Space Technologies Limited cash-flow valuation
Our discounted cash flow (2-stage) values Paras Defence and Space Technologies Limited at ₹16 per share. implied value is <0.2× the price (likely a data error). 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 Paras Defence and Space Technologies 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 Paras Defence and Space Technologies 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 ₹791 – ₹967
Why this method for this business
The aerospace and defense sector is capital-intensive, requiring a DCF to capture the value of long-term cash flows, EV/EBITDA to assess operational efficiency, and a relative P/E to benchmark against peers.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
required inputs missing
- Discounted cash flow (DCF) is not used for cyclical or volatile sectors, but it is appropriate here due to the stable demand for defense products. EV/EBITDA is not used for asset-light businesses, but it is suitable for capital-heavy firms like this one. Relative P/E is not used for growth stocks, but it is appropriate for mature, stable businesses like this one.
What was missing
- Lack of detailed information on capital expenditures and working capital requirements
- Limited analyst coverage and forward estimates
- Insufficient data on the company's competitive positioning relative to global peers
What drives it
15 inputs, grouped by how strong each claim is
- Sector-median P/E
- 52.02×
- Peers used
- 4
- EPS (TTM)
- 11.72 ₹/share
- Own-history median P/E
- 101.73×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Term: quality
- +2.5%
- Term: growth
- +40.0%
- Term: capital_allocation
- +0.9%
- Term: financial_strength
- +5.6%
- Term: history
- +25.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 60/100 (high, stable returns) → premium
durable ~34% CAGR (ROCE 13% > hurdle) → premium
capital allocation: steady → neutral
financial strength: effectively debt-free → premium
history: market paid +96% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +44.2%
- Fair-multiple confidence
- 80%
- Fair P/E
- 75×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Paras Defence and Space Technologies 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 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 Paras Defence and Space Technologies Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.