PVR INOX Limited Intrinsic Value
PVRINOX · Media Entertainment & Publication · Current price ₹1,385.7
Is PVR INOX Limited undervalued?
We estimate the fair value of PVR INOX Limited at ₹1,365 per share, against a market price of ₹1,237. That puts the share price about +10.3% below our estimate, at medium 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 2 methods: Discounted cash flow (2-stage) (₹1,426), Fair multiple (P/E) (₹1,257). 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 PVR INOX Limited spans ₹1,228 to ₹1,501. 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 ₹1,237 against an estimated value of ₹1,365, PVR INOX Limited trades at +10.3%, i.e. a discount 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 PVR INOX 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 ₹1,228 – ₹1,501
Why this method for this business
The DCF model is appropriate for valuing a business with predictable cash flows and a clear growth trajectory, while the relative PE model provides a market-based valuation benchmark for a mature, asset-light business with a strong moat.
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
- residual_income: Not suitable for a business with volatile earnings and high leverage
- dcf: Already included as the primary model
What was missing
- Lack of historical P/E multiples for benchmarking
- Limited analyst coverage for precise forward estimates
What drives it
26 inputs, grouped by how strong each claim is
- FCF_0 (normalized)
- 1,370 ₹cr
- Net debt
- 6,779 ₹cr
- Sector-median P/E
- 22.53×
- Peers used
- 5
- EPS (TTM)
- 45.27 ₹/share
fcf_norm (median ≤5y positive)
gross debt (cash n/a)
peer-median
peer-median
computed
- Discount rate (r)
- 12.6%
- Beta
- 1
WACC (computed)
bottom-up industry
- Stage-1 start growth
- 8%
- Fade shape
- hard
- Terminal growth (g)
- 4.89%
- Stage-1 years
- 12 y
lifecycle-floor
lifecycle Hyper-Growth
macro terminal × quality premium
lifecycle Hyper-Growth horizon
- Lifecycle stage
- Hyper-Growth
- Quality premium
- 0.977×
- Term: quality
- -9.8%
- Term: growth
- +40.0%
- Term: capital_allocation
- -5.7%
- Term: financial_strength
- +2.3%
- Term: history
- +0.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
forecast engine (L20)
moat None + capital allocation
quality 35/100 (weak/erratic returns) → discount
durable ~88% CAGR (ROCE 7% < 12% hurdle (growth not value-accretive)) → premium
capital allocation: falling ROCE / weak cash generation → discount
financial strength: low leverage (D/E 0.9) → mild premium
history: no reliable own-history P/E → not used
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)
- Path
- FCFF
- Terminal-value fraction
- 0.436
- Premium vs sector
- +23.3%
- Fair-multiple confidence
- 50%
- Fair P/E
- 27.77×
computed (D/E vs 0.8)
PV_TV / (PV_1+PV_TV)
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 PVR INOX 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 PVR INOX Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.