Sterling and Wilson Renewable Energy Limited Fair Value

SWSOLAR · Construction · Current price ₹166.83

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DocStoX fair value
₹99
medium confidence · 62/100
Current price
₹180
Upside to fair value
-45.1%
Estimate range
₹89 – ₹109
Quality score
3.5 / 10
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Is Sterling and Wilson Renewable Energy Limited undervalued?

We estimate the fair value of Sterling and Wilson Renewable Energy Limited at ₹99 per share, against a market price of ₹180. That puts the share price about -45.1% 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: Discounted cash flow (2-stage) (₹99). 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 Sterling and Wilson Renewable Energy Limited spans ₹89 to ₹109. 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 Sterling and Wilson Renewable Energy Limited. Nothing here is a target price or a forecast of where the share price will go.

Medium confidence62/100

Workable, with real gaps. Weigh it alongside your own view rather than on its own.

Estimate range ₹89 – ₹109

Why this method for this business

The DCF model is appropriate for a capital-intensive business like SWSOLAR, which has significant debt and requires cash flow analysis. The EV/EBITDA model complements this by providing a market-based valuation metric.

The models behind the number

Each method is weighted by how well its inputs held up for this company.

Discounted cash flow (2-stage)
₹9970% weight

Intrinsic value from 2-stage discounted cash flows (primary for asset-light / normal businesses); FCFF path

EV / EBITDA(not enough data)

required inputs missing

  • relative_pe: insufficient data on comparable multiples
  • ev_ebitda: used despite missing inputs, but adjusted with available data

What was missing

  • Missing historical EBITDA margins for normalization
  • Limited analyst coverage for EV/EBITDA multiple

What drives it

12 inputs, grouped by how strong each claim is
ReportedRead from filings or market data. Verifiable, not our opinion.
FCF_0 (normalized)
272 ₹cr

fcf_norm (median ≤5y positive)

Net debt
876.9 ₹cr

total_debt − cash

MacroEconomy-wide input, not company-specific.
Discount rate (r)
14.76%

WACC (computed)

Beta
1.45

bottom-up industry

AssumptionA forward input the model chose. Reasonable people can disagree here.
Stage-1 start growth
8%

lifecycle-floor

Fade shape
linear

lifecycle Turnaround

Terminal growth (g)
4.9%

macro terminal × quality premium

Stage-1 years
8 y

lifecycle Turnaround horizon

JudgementOur read of the evidence, not a measurement.
Lifecycle stage
Turnaround

forecast engine (L20)

Quality premium
0.98×

moat None + capital allocation

DerivedFalls out of the inputs above: a model output, not an independent input.
Path
FCFF

computed (D/E vs 0.8)

Terminal-value fraction
0.496

PV_TV / (PV_1+PV_TV)

Who computed this

A language model (qwen3:8b) selects the valuation method and the judgement inputs for Sterling and Wilson Renewable Energy 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 15 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 methodology

More on Sterling and Wilson Renewable Energy Limited

DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.