SONATA SOFTWARE LTD Valuation

SONATSOFTW · Information Technology · Current price ₹288.45

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DocStoX fair value
₹250
low confidence
Current price
₹288
Upside
-13.2%
P/E ratio
17.4x
P/B ratio
4.0x
Verdict
Expensive
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Is SONATA SOFTWARE LTD undervalued?

DocStoX estimates the fair value of SONATA SOFTWARE LTD at ₹250 per share, versus the current market price of ₹288. That puts the stock about -13.2% 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 (₹189), Relative P/E (₹360), Graham floor (₹159), Analyst target (₹333). 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 ₹159 (bear) to ₹250 (base) to ₹360 (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

SONATA SOFTWARE LTD trades at a P/E of 17.4x and a P/B of 4.0x, with a dividend yield of 2.7%. 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 SONATA SOFTWARE 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.