Divis Laboratories Intrinsic Value

DIVISLAB • Healthcare
Current Stock Price
₹5850.00
Primary Intrinsic Value
₹2285.36
Market Cap
₹310.1K Cr
-50.5% Downside
Median Value
₹2895.50
Value Range
₹1755 - ₹7796
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

DIVISLAB Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹2285.36 ₹1828.29 - ₹2742.43 -60.9% EPS: ₹103.88, Sector P/E: 22x
Book Value Method asset ₹5648.68 ₹5083.81 - ₹6213.55 -3.4% Book Value/Share: ₹2824.34, P/B: 2.0x
Revenue Multiple Method revenue ₹4316.98 ₹3885.28 - ₹4748.68 -26.2% Revenue/Share: ₹2158.49, P/S: 2.0x
EBITDA Multiple Method earnings ₹7796.23 ₹7016.61 - ₹8575.85 +33.3% EBITDA: ₹4132.00Cr, EV/EBITDA: 10x
Simple DCF (5Y) dcf ₹2895.50 ₹2316.40 - ₹3474.60 -50.5% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹1755.00 ₹1579.50 - ₹1930.50 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹1755.00 ₹1579.50 - ₹1930.50 -70.0% Revenue Growth: 6.0%, Adj P/E: 15.5x
ROE Based Valuation profitability ₹7280.00 ₹6552.00 - ₹8008.00 +24.4% ROE: 18.4%, P/E Multiple: 14x
Graham Defensive Method conservative ₹2569.31 ₹2312.38 - ₹2826.24 -56.1% EPS: ₹103.88, BVPS: ₹2824.34
Method Types: Earnings Asset DCF Growth Dividend Conservative

Valuation Comparison Chart

DIVISLAB Intrinsic Value Analysis

What is the intrinsic value of DIVISLAB?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Divis Laboratories (DIVISLAB) is ₹2895.50 (median value). With the current market price of ₹5850.00, this represents a -50.5% variance from our estimated fair value.

The valuation range spans from ₹1755.00 to ₹7796.23, indicating ₹1755.00 - ₹7796.23.

Is DIVISLAB undervalued or overvalued?

Based on our multi-method analysis, Divis Laboratories (DIVISLAB) appears to be trading above calculated value by approximately 50.5%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 19.73 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Return on Equity 18.4% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 33.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.68x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹1,653 Cr ₹1,251 Cr Positive Free Cash Flow 8/10
March 2024 ₹1,261 Cr ₹1,127 Cr Positive Free Cash Flow 8/10
March 2023 ₹2,460 Cr ₹1,106 Cr Positive Free Cash Flow 7/10
March 2022 ₹1,912 Cr ₹815 Cr Positive Free Cash Flow 7/10
March 2021 ₹1,947 Cr ₹1,947 Cr Positive Free Cash Flow 8/10