RAINBOW CHILDRENS MED LTD Fair Value
RAINBOW · Healthcare · Current price ₹1,442
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹203 | 18% ROE fading to 13% over ~10 yrs, on ₹162 book |
| Relative P/E | ₹1,773 | EPS × 64.7 peer-median P/E |
| Graham floor | ₹316 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹1,773 | Street consensus 12-month target price |
Is RAINBOW CHILDRENS MED LTD undervalued?
DocStoX estimates the fair value of RAINBOW CHILDRENS MED LTD at ₹862 per share, versus the current market price of ₹1,442. That puts the stock about -40.3% 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 4 independent methods: Residual income (₹203), Relative P/E (₹1,773), Graham floor (₹316), Analyst target (₹1,773). 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 ₹203 (bear) to ₹862 (base) to ₹1,773 (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 RAINBOW CHILDRENS MED 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.