Poonawalla Fincorp Limited DCF Valuation
POONAWALLA · Financial Services · Current price ₹447.5
Poonawalla Fincorp Limited cash-flow valuation
Our residual income (excess return on book) values Poonawalla Fincorp Limited at ₹122 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 ₹122. 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 Poonawalla Fincorp 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 Poonawalla Fincorp 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 ₹110 – ₹134
Why this method for this business
Poonawalla Fincorp is an NBFC with a focus on consumer and MSME financing, making justified P/B and residual income models the most appropriate for assessing its value based on sustainable ROE and cost of equity.
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 low data quality and lack of peer comparables with similar risk profiles
- DCF was excluded as it is not suitable for NBFCs where debt is a core part of the business model
What was missing
- Lack of detailed peer comparisons for P/B normalization
- Limited forward EPS data for residual income model
What drives it
5 inputs, grouped by how strong each claim is
- ROE (normalized)
- 9.1%
- Book value / share
- 127 ₹
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 Poonawalla Fincorp 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 Poonawalla Fincorp Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.