SBI FUNDS MANAGEMENT LTD Intrinsic Value
SBIFUNDS · Financial Services · Current price ₹472
Is SBI FUNDS MANAGEMENT LTD undervalued?
We estimate the fair value of SBI FUNDS MANAGEMENT LTD at ₹1,808 per share, against a market price of ₹544. That puts the share price about +232.2% below our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 1 method: Fair multiple (P/E) (₹1,808). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for SBI FUNDS MANAGEMENT LTD spans ₹1,627 to ₹1,989. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Margin of safety
Value investors look for a margin of safety: a discount to estimated value that absorbs being wrong. At ₹544 against an estimated value of ₹1,808, SBI FUNDS MANAGEMENT LTD trades at +232.2%, i.e. a discount to our estimate. How much margin to demand depends on how much you trust the inputs, which is what the confidence band below is for.
How we got this fair value
Every number below is part of the same estimate for SBI FUNDS MANAGEMENT LTD. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹1,627 – ₹1,989
Why this method for this business
SBI Funds Management is an asset-light, compounder AMC with a durable moat and strong earnings power. A relative P/E multiple is the most appropriate method to value its earnings-driven business.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
- dcf: DCF is not suitable for an AMC with stable, predictable earnings and no significant capital expenditures. The deterministic baseline's DCF model was excluded due to missing inputs and the nature of the business.
What was missing
- Lack of historical P/E data for the company
- Limited analyst coverage for the company
What drives it
14 inputs, grouped by how strong each claim is
- Sector-median P/E
- 50.36×
- Peers used
- 3
- EPS (TTM)
- 24.11 ₹/share
peer-median
peer-median
computed
- Term: quality
- +17.2%
- Term: growth
- +40.0%
- Term: capital_allocation
- +5.4%
- Term: financial_strength
- +10.0%
- Term: history
- +0.0%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 89/100 (high, stable returns) → premium
durable ~27% CAGR (ROCE 47% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: effectively debt-free → premium
history: no reliable own-history P/E → not used
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +48.9%
- Fair-multiple confidence
- 56%
- Fair P/E
- 75×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for SBI FUNDS MANAGEMENT LTD: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on SBI FUNDS MANAGEMENT LTD
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.