RITES LIMITED Fair Value
RITES · Construction · Current price ₹216.13
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹66 | 15% ROE fading to 12% over ~10 yrs, on ₹56 book |
| Relative P/E | ₹298 | EPS × 34.9 peer-median P/E |
| Graham floor | ₹104 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹285 | Street consensus 12-month target price |
Is RITES LIMITED undervalued?
DocStoX estimates the fair value of RITES LIMITED at ₹164 per share, versus the current market price of ₹216. That puts the stock about -24.3% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹66), Relative P/E (₹298), Graham floor (₹104), Analyst target (₹285). 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 ₹66 (bear) to ₹164 (base) to ₹298 (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 RITES LIMITED
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.