Eicher Motors

As per my DDM valuation model, assuming a 15% growth rate for next 5 years and a gradual slowdown to 8% growth over next 10 years, fair value works out to be 16,500. That does not mean I expect stock will drop to that level, it only means I will be confident that risk is in line with rewards. One may ask for a margin on safety on top of this.

Please note valuation models can be very subjective and everyone can come up with their own fair value using variety of methods.