Raama Finance Ltd Valuation

RLFL · Financial Services · Current price ₹17.14

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DocStoX fair value
₹3
low confidence
Current price
₹17
Upside
-82.5%
P/E ratio
47.5x
P/B ratio
5.3x
Verdict
Avoid
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Is Raama Finance Ltd undervalued?

DocStoX estimates the fair value of Raama Finance Ltd at ₹3 per share, versus the current market price of ₹17. That puts the stock about -82.5% 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 1 independent method: Excess-return (book value) (₹3). 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 ₹3 (bear) to ₹3 (base) to ₹3 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

Raama Finance Ltd trades at a P/E of 47.5x and a P/B of 5.3x, with a dividend yield of 0.0%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on Raama Finance 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.