Cipla Limited (CIPLA) fair value: what the stock is really worth
We calculate from audited financials what Cipla Limited is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 18, 2026.
How to read this chart
60‑month range ₹825.37 – ₹1,648 · fair‑value band ₹821.70 – ₹2,577 · the ₹1,395 price screens below the ₹1,801 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 18, 2026.
Cipla Limited, together with its subsidiaries, manufactures, develops, sells, and distributes pharmaceutical products in India, the United States, South Africa, and internationally.
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Cipla Limited, together with its subsidiaries, manufactures, develops, sells, and distributes pharmaceutical products in India, the United States, South Africa, and internationally. It offers generic and branded generic medicines, vaccines, active pharmaceutical ingredients, and formulations for various therapeutic areas, such as MI, angina, heart disease, pulmonary disease, kidney disorders, alzheimer's disease, hypertension, arrhythmia, lipid abnormalities and diabetes, obesity, central nervous system, HIV/AIDS, respiratory, asthma, urology, oncology, cardio-metabolism, child health, infectious diseases and critical care, hepatitis, women's health, ophthalmology, and neuro psychiatry. The company is also involved in the consumer healthcare, biosimilars, and specialty businesses. Cipla Limited was incorporated in 1935 and is based in Mumbai, India.
Stock analysis
Cipla Limited (CIPLA) currently trades at ₹1,395, while our model-based Fair Value estimate is ₹1,801, implying the stock looks roughly 22.6% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹2,231 per share, and 8 of the 26 models we run sit above the ₹1,395 price.
Bear case: the Dividend Discount group reads lowest at ₹275.21, and 18 of the 26 models stay below the price. Evidence for this calculation is medium.
Scenario range: ₹821.70 (bear) to ₹2,577 (bull), the price of ₹1,395 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 55/100 (solid quality), in the Healthcare sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Cipla Limited reported revenue of ₹282B in FY2026 versus ₹217B in FY2022, a compound +6.7%/yr. Reported net income was ₹38.8B in FY2026, compounding +11.4%/yr from FY2022.
Key figures
Market cap ₹1.1T (≈ $11.7B) · P/E ratio 29.1 · P/S ratio 4.01 · EPS (TTM) ₹47.93 · Dividend yield 0.9% · Net margin 13.8% · Return on equity 11.7% · Return on assets (EBIT) 24.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (medium confidence).
What moves the price
The share trades about 16% below its 52-week high and 21% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −18% fair-value upside, at 29%, CIPLA screens cheaper than that median.
Fair Value models
Bear ₹821.70Fair Value ₹1,801Bull ₹2,577
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹16.71 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.73/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+3.3%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.7%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.1%
Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.2%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+10.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+10.0%
Dividend (yield on the price)0.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.10% vs 13%, steady
Profit margin 2004 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.23% → 17%
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+24.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+9.9%
Yearly sales growth analysts expect, extended to five years.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Drug Manufacturers - Specialty & Generic · 607 stocks
Beats the industry median on 8/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score55 · Above median
Fair Value upside+30% · Top 25%
Profitability
Return on equity (TTM)12% · Above median
Return on assets8% · Top 25%
Net margin (TTM)14% · Top 25%
Operating margin (TTM)11% · Above median
Growth and dividend
Revenue growth−2% · Below median
Dividend yield (TTM)0.9% · Below median
Balance sheet
Debt / equity0.00× · Lowest 25%
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Cipla Limited Fair Value". https://www.fairvalue-calculator.com/stock/CIPLA
Frequently asked questions
Is Cipla Limited (CIPLA) overvalued or undervalued?
As of Sep 18, 2026, our model estimates a fair value of ₹1,801 versus a price of ₹1,395, about +29% upside (undervalued).
What is the fair value of CIPLA?
Our model-based fair value for Cipla Limited is ₹1,801 (as of Sep 18, 2026), built from audited fundamentals. The current price: ₹1,395.
What is the quality score of CIPLA?
Cipla Limited has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Cipla Limited (CIPLA)?
Our model-based price target is the fair value of ₹1,801 (as of Sep 18, 2026) from 26 valuation models. Cautious scenario ₹821.70, optimistic scenario ₹2,577. It is a calculation from audited fundamentals, not an analyst target.
What is the Cipla Limited stock forecast for 2026?
Our models put fair value at ₹1,801, about +29% upside versus a price of ₹1,395 (undervalued). Cautious scenario ₹821.70, optimistic scenario ₹2,577. The calculation is refreshed regularly with new filings.
What is the revenue of Cipla Limited (CIPLA)?
Cipla Limited reported trailing-twelve-month revenue of about ₹278B (latest available figure, as of Sep 18, 2026).
Does Cipla Limited pay a dividend?
Cipla Limited currently shows a dividend yield of about 0.93% relative to its recent price (as of Sep 18, 2026).
What growth is priced into Cipla Limited (CIPLA)?
For today's price to be fair in a discounted-cash-flow model, Cipla Limited would have to grow free cash flow by +24.8 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +8.1 % per year. As of Sep 18, 2026.
What discount rate (WACC) does the fair value of CIPLA use?
Our models discount Cipla Limited at 10.4 %: a base by market capitalisation (large), damped by beta 0.11, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Cipla Limited that is +24.8 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has Cipla Limited (CIPLA) delivered so far?
Over the past 5 years revenue at Cipla Limited grew +8.1 % a year. The price currently implies +24.8 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Cipla Limited (CIPLA) growing?
The median revenue growth in the sector is +4.3 % a year. That is the yardstick for the growth priced into Cipla Limited (+24.8 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Cipla Limited (CIPLA)?
The free-cash-flow yield on the price is 2.24 %: that much free cash flow Cipla Limited produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Cipla Limited (CIPLA)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Cipla Limited it is ₹1,801 per share (as of Sep 18, 2026), against a price of ₹1,395. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Cipla Limited stock overvalued or undervalued in 2026?
As of Sep 18, 2026, CIPLA trades below its calculated fair value: price ₹1,395, fair value ₹1,801, a gap of about +29% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of CIPLA?
No. The price is what the market pays today (₹1,395); the fair value is what the company's own numbers justify (₹1,801). For Cipla Limited the two are ₹406.53 per share apart. That gap is exactly why we show both numbers side by side.
How much is Cipla Limited worth?
The market values Cipla Limited at about ₹1.1T (market capitalisation, as of Sep 18, 2026). Per share that is ₹1,395; our models calculate a fair value of ₹1,801 per share.
What do the bullish and bearish scenarios say about CIPLA?
Our models span a range for Cipla Limited: cautious scenario ₹821.70, base ₹1,801, optimistic ₹2,577 per share (as of Sep 18, 2026, price ₹1,395). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of CIPLA?
Cipla Limited trades at a price-to-earnings ratio of 29.1 (as of Sep 18, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹1,801 is built from several models across several years. Other multiples: P/B 3.4, P/S 4.2, EV/EBITDA 19.9.
How solid is the balance sheet of Cipla Limited (CIPLA)?
Balance-sheet figures for Cipla Limited (as of Sep 18, 2026): return on equity 11.7%, debt of 0.00 per unit of equity. They feed the Quality Score of 55/100, which measures business quality independently of the share price.
How far is CIPLA from its 52-week high?
Cipla Limited trades at ₹1,395, about 16% below its 52-week high of ₹1,657 and 21% above the low of ₹1,155 (as of Sep 18, 2026). Distance from the high says nothing about value: that is what the fair value of ₹1,801 is for.
Which stocks are comparable to Cipla Limited?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Jiangsu Hengrui Pharmaceuticals Co, Sun Pharmaceutical Industries Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Cipla Limited stock attractive at the current price?
The data as of Sep 18, 2026: price ₹1,395, calculated fair value ₹1,801 (+29%), Quality Score 55/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of CIPLA calculated?
We run Cipla Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹1,801, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.1 % above its aggregate fair value. Cipla Limited currently trades 29 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Cipla Limited (CIPLA)?
The closing price on Sep 18, 2026 was ₹1,395. Our model-based fair value is ₹1,801, about +29% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Cipla Limited right now?
The model range is unusually wide (₹821.70 to ₹2,577). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of Cipla Limited (CIPLA) come from?
Earnings per share at Cipla Limited grew +15.7 % a year from 2015 to 2026. Broken into its drivers: revenue per share +8.3 %, EBIT margin −2.8 %, tax rate −0.7 %, residual (interest, one-offs) +10.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Cipla Limited
How large is the market capitalisation of Cipla Limited (CIPLA)?
The market capitalisation of Cipla Limited is ₹1.1T (≈ $11.7B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Cipla Limited (CIPLA)?
The price-to-sales ratio of Cipla Limited is 4.01 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Cipla Limited (CIPLA)?
Earnings per share at Cipla Limited are ₹47.93 (price ÷ EPS = P/E 29.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Cipla Limited (CIPLA)?
The dividend yield of Cipla Limited is 0.9% (payout 27.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Cipla Limited (CIPLA)?
The net margin of Cipla Limited is 13.8% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Cipla Limited (CIPLA)?
The return on equity (ROE) of Cipla Limited is 11.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Cipla Limited (CIPLA)?
On an EBIT basis the return on assets of Cipla Limited is 24.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Cipla Limited (CIPLA)?
The operating margin of Cipla Limited is 11.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Cipla Limited (CIPLA)?
Revenue at Cipla Limited is growing −2.1% versus a year earlier (3y avg +7.7%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Cipla Limited (CIPLA)?
Earnings per share at Cipla Limited are growing −54.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Cipla Limited (CIPLA) hold?
Cipla Limited holds more cash than debt, ₹6.9B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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