United Breweries Limited Valuation
UBL · Fast Moving Consumer Goods · Current price ₹1,207
Is United Breweries Limited undervalued?
We estimate the fair value of United Breweries Limited at ₹1,122 per share, against a market price of ₹1,256. That puts the share price about -10.7% above our estimate, at high 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: Fair multiple (P/E) (₹1,122). 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 United Breweries Limited spans ₹1,010 to ₹1,234. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
Valuation multiples
United Breweries Limited trades at a P/E of 77.2x and a P/B of 7.3x, with a dividend yield of 0.8%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.
How we got this fair value
Every number below is part of the same estimate for United Breweries Limited. Nothing here is a target price or a forecast of where the share price will go.
The models agree and the inputs are well covered. Treat this as our firmest estimate.
Estimate range ₹1,010 – ₹1,234
Why this method for this business
Relative P/E and PEG are appropriate for an asset-light, branded consumer business with durable moat and predictable earnings power.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
- dcf: Not suitable for a cyclical or capital-intensive business
- peg: Limited relevance for a mature brand with stable growth
What was missing
- Lack of forward EPS estimates for more than one year
- Limited analyst coverage and dispersion data
- No detailed capital allocation or ROCE data
What drives it
16 inputs, grouped by how strong each claim is
- Sector-median P/E
- 21.38×
- Peers used
- 145
- EPS (TTM)
- 14.96 ₹/share
- Own-history median P/E
- 109.85×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Anchor correction
- peer anchor 21.4x diverges 5.1x from 6yr own-history 109.8x (no size-comparable peer) — anchor blended 0.6 toward own-history → 74.5x
- Term: quality
- -1.1%
- Term: growth
- +40.0%
- Term: capital_allocation
- -5.8%
- Term: financial_strength
- +6.0%
- Term: history
- +14.3%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
peer-anchor mismatch — deep own-history used instead
quality 53/100 (about average) → neutral
durable ~23% CAGR (ROCE 14% > hurdle) → premium
capital allocation: falling ROCE / weak cash generation → discount
financial strength: low leverage (D/E 0.3) → mild premium
history: market paid +48% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Premium vs sector
- +0.7%
- Fair-multiple confidence
- 84%
- Fair P/E
- 75×
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for United Breweries 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 methodologyUnderstand the ratios
More on United Breweries Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.