PERSISTENT SYSTEMS LTD Fair Value

PERSISTENT · Information Technology · Current price ₹5,183.9

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DocStoX fair value
₹1,468
low confidence
Current price
₹5,184
Upside to fair value
-71.7%
Verdict
Avoid
Quality score
6.0 / 10
Valuation methods
MethodFair valueStatus
Residual income₹93127% ROE fading to 12% over ~10 yrs, on ₹497 book
Relative P/E₹2,720EPS × 23.0 peer-median P/E
Graham floor₹1,150Conservative floor: √(22.5 × EPS × book value/share)
Analyst targetNo analyst coverage
Model it yourself — Margin of Safety Calculator
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Is PERSISTENT SYSTEMS LTD undervalued?

DocStoX estimates the fair value of PERSISTENT SYSTEMS LTD at ₹1,468 per share, versus the current market price of ₹5,184. That puts the stock about -71.7% 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 3 independent methods: Residual income (₹931), Relative P/E (₹2,720), Graham floor (₹1,150). 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 ₹931 (bear) to ₹1,468 (base) to ₹2,720 (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 PERSISTENT SYSTEMS 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.