Piramal Finance Limited DCF Valuation
PIRAMALFIN · Financial Services · Current price ₹1,941
Piramal Finance Limited cash-flow valuation
Our residual income (excess return on book) values Piramal Finance Limited at ₹986 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 ₹986. 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 Piramal Finance 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 Piramal Finance 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 ₹887 – ₹1,085
Why this method for this business
The justified P/B and residual income models are most appropriate for a housing finance company like Piramal Finance, as they focus on book value and return on equity, which are critical for NBFCs.
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 was excluded due to its reliance on peer comparisons which may not reflect the unique risk profile of a housing finance company.
What was missing
- Lack of detailed peer comparisons for P/B
- Limited forward EBITDA estimates for precise valuation
What drives it
5 inputs, grouped by how strong each claim is
- ROE (normalized)
- 2.3%
- Book value / share
- 1,242 ₹
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 Piramal Finance 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 Piramal Finance Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.