RELIANCE POWER LTD. Valuation

RPOWER · Power · Current price ₹24.44

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DocStoX fair value
₹32
low confidence
Current price
₹24
Upside
+30.9%
P/E ratio
P/B ratio
0.7x
Verdict
Expensive
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Is RELIANCE POWER LTD. undervalued?

DocStoX estimates the fair value of RELIANCE POWER LTD. at ₹32 per share, versus the current market price of ₹24. That puts the stock about +30.9% below 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 1 independent method: Residual income (₹32). 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 ₹27 (bear) to ₹32 (base) to ₹37 (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

RELIANCE POWER LTD. trades at a P/E of — and a P/B of 0.7x, 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 RELIANCE POWER 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.