TORRENT POWER LTD Fair Value
TORNTPOWER · Power · Current price ₹1,264.9
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹378 | 13% ROE fading to 14% over ~3 yrs, on ₹379 book |
| Relative P/E | ₹1,539 | EPS × 32.1 peer-median P/E |
| Graham floor | ₹639 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹1,462 | Street consensus 12-month target price |
Is TORRENT POWER LTD undervalued?
DocStoX estimates the fair value of TORRENT POWER LTD at ₹857 per share, versus the current market price of ₹1,265. That puts the stock about -32.2% 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 (₹378), Relative P/E (₹1,539), Graham floor (₹639), Analyst target (₹1,462). 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 ₹378 (bear) to ₹857 (base) to ₹1,539 (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 TORRENT POWER 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.