ZYDUS LIFESCIENCES LTD Valuation

ZYDUSLIFE · Healthcare · Current price ₹1,143.7

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DocStoX fair value
₹795
low confidence
Current price
₹1,144
Upside
-30.5%
P/E ratio
22.8x
P/B ratio
4.1x
Verdict
Avoid
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Is ZYDUS LIFESCIENCES LTD undervalued?

DocStoX estimates the fair value of ZYDUS LIFESCIENCES LTD at ₹795 per share, versus the current market price of ₹1,144. That puts the stock about -30.5% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹391), Relative P/E (₹1,739), Graham floor (₹551). 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 ₹391 (bear) to ₹795 (base) to ₹1,739 (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

ZYDUS LIFESCIENCES LTD trades at a P/E of 22.8x and a P/B of 4.1x, with a dividend yield of 0.1%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on ZYDUS LIFESCIENCES 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.