RAINBOW CHILDRENS MED LTD Intrinsic Value

RAINBOW · Healthcare · Current price ₹1,442

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DocStoX fair value
₹862
low confidence
Current price
₹1,442
Upside to fair value
-40.3%
Verdict
Avoid
Quality score
4.8 / 10
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Opens pre-filled with RAINBOW CHILDRENS MED LTD's latest numbers.

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.

Margin of safety

Value investors demand a margin of safety — a discount to intrinsic value that protects against being wrong. At ₹1,442 versus an intrinsic value of ₹862, RAINBOW CHILDRENS MED LTD currently offers -40.3% of negative margin (i.e. a premium).

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.