TERA SOFTWARE LIMITED Fair Value
TERASOFT · Information Technology · Current price ₹283.4
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹125 | 17% ROE fading to 12% over ~3 yrs, on ₹116 book |
| Relative P/E | ₹431 | EPS × 21.7 peer-median P/E |
| Graham floor | ₹227 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | — | No analyst coverage |
Is TERA SOFTWARE LIMITED undervalued?
DocStoX estimates the fair value of TERA SOFTWARE LIMITED at ₹227 per share, versus the current market price of ₹283. That puts the stock about -19.9% 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 3 independent methods: Residual income (₹125), Relative P/E (₹431), Graham floor (₹227). 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 ₹125 (bear) to ₹227 (base) to ₹431 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on TERA SOFTWARE LIMITED
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.