Sobha Limited Fair Value
SOBHA · Realty · Current price ₹1,189.6
Is Sobha Limited undervalued?
We estimate the fair value of Sobha Limited at ₹351 per share, against a market price of ₹1,217. That puts the share price about -71.2% above 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: Residual income (legacy engine) (₹351). 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 Sobha Limited spans ₹316 to ₹568. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
How we got this fair value
Every number below is part of the same estimate for Sobha Limited. 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 ₹316 – ₹568
Why this method for this business
Legacy residual income is appropriate for a real estate developer with a focus on book value and sustainable ROE, despite the sector's cyclical nature.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Book-value residual income with per-category routing (legacy engine)
- DCF is not suitable due to the cyclical and capital-intensive nature of real estate development
- EV/EBITDA is not used due to the lack of consistent EBITDA margins and the presence of debt
What was missing
- Lack of forward EPS estimates
- Limited data on project-specific margins and execution risks
What drives it
3 inputs, grouped by how strong each claim is
- Cost of equity
- 12.5%
building-block
- Moat
- None
- Uncertainty
- Very High
computed
computed
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Sobha Limited: 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 Sobha Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.