VEDANTA LIMITED Valuation

VEDL · Metals & Mining · Current price ₹273.95

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DocStoX fair value
₹506
low confidence
Current price
₹274
Upside
+84.9%
P/E ratio
6.2x
P/B ratio
2.2x
Verdict
Strong Buy
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Is VEDANTA LIMITED undervalued?

DocStoX estimates the fair value of VEDANTA LIMITED at ₹506 per share, versus the current market price of ₹274. That puts the stock about +84.9% below our fair-value estimate, which we read as "Strong Buy". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 4 independent methods: Residual income (₹170), Relative P/E (₹1,462), Graham floor (₹356), Analyst target (₹315). 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 ₹170 (bear) to ₹506 (base) to ₹1,462 (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

VEDANTA LIMITED trades at a P/E of 6.2x and a P/B of 2.2x, with a dividend yield of 12.1%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

P/E RatioP/B RatioPEG RatioEarnings Yield

More on VEDANTA LIMITED

Fair ValueIntrinsic ValueDCFFinancial RatiosPeers

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.