Lemon Tree Hotels Limited (LEMONTREE) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Lemon Tree Hotels Limited ₹118, price ₹108, upside +10.0%, quality 60 out of 100. Calculated from audited financials with 26 valuation models and 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 Oct 2, 2026.
How to read this chart
60‑month range ₹36.95 – ₹177.93 · fair‑value band ₹60.51 – ₹170.18 · the ₹107.67 price screens below the ₹118.44 fair value. Dashed = 300-day average. As of Oct 2, 2026.
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Lemon Tree Hotels Limited, together with its subsidiaries, engages in the hotel business in India. The company also operates hotel chains, owns, leases, operates, franchises hotels. It provides housing rental, digital transformation services.
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Lemon Tree Hotels Limited, together with its subsidiaries, engages in the hotel business in India. The company also operates hotel chains, owns, leases, operates, franchises hotels. It provides housing rental, digital transformation services. The company operates hotels in India and internationally under various brand names, including Aurika Hotels and Resorts, Lemon Tree Premier, Lemon Tree Hotels, Red Fox Hotels, Keys Prima, Keys Select, and Keys Lite. Lemon Tree Hotels Limited was incorporated in 1992 and is based in New Delhi, India.
Stock analysis
Lemon Tree Hotels Limited (LEMONTREE) currently trades at ₹107.67, while our model-based Fair Value estimate is ₹118.44, implying the stock looks roughly 9.1% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹93.77 per share, and 5 of the 24 models we run sit above the ₹107.67 price.
Bear case: the Economic Profit group reads lowest at ₹21.80, and 19 of the 24 models stay below the price. Evidence for this calculation is medium.
Scenario range: ₹60.51 (bear) to ₹170.18 (bull), the price of ₹107.67 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 60/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Lemon Tree Hotels Limited reported revenue of ₹14.4B in FY2026 versus ₹4.0B in FY2022, a compound +37.6%/yr. Reported net income was ₹2.3B in FY2026.
Key figures
Market cap ₹85.2B (≈ $885M) · P/E ratio 35.1 · P/S ratio 5.51 · EPS (TTM) ₹3.07 · Net margin 15.7% · Return on equity 14.9% · Return on assets (EBIT) 15.0% · Operating margin 33.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 38% below its 52-week high and 7% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −28% fair-value upside, at 10%, LEMONTREE screens cheaper than that median.
Fair Value models
Bear ₹60.51Fair Value ₹118.44Bull ₹170.18
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 (₹1.56 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.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.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+12.1%
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.
+18.2%
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.
+41.8%
Start year 2021 (pandemic). Over 10 years: +14.6% a year
Revenue growth 13 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.
+15.7%
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What shareholders gained per year (last 3 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 3 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. Basis: EBIT basis. 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.
≈ −3.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year−3.0%
Dividend (yield on the price)0.0%
⚠ Rate on operating basis: 2026 sits 53% above its own trend.
Growth Forecast
A lot of optimism in the price
The price assumes less 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).
+30.8%
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.
+9.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +25.6% a year for the price and +5.2% for the forecasts.
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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.Lodging · 158 stocks
Beats the industry median on 7/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score60 · Above median
Fair Value upside+8.5% · Above median
Profitability
Return on equity (TTM)14.9% · Top 25%
Return on assets8.4% · Top 25%
Net margin (TTM)15.7% · Above median
Operating margin (TTM)43.9% · Top 25%
Growth and dividend
Revenue growth9.4% · Above median
Balance sheet
Debt / equity0.94× · Highest 25%
Valuation Multiplesvs Lodging 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). "Lemon Tree Hotels Limited Fair Value". https://www.fairvalue-calculator.com/stock/LEMONTREE
Frequently asked questions
Is Lemon Tree Hotels Limited (LEMONTREE) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of ₹118.44 versus a price of ₹107.67, about +10% upside (undervalued).
What is the fair value of LEMONTREE?
Our model-based fair value for Lemon Tree Hotels Limited is ₹118.44 (as of Oct 2, 2026), built from audited fundamentals. The current price: ₹107.67.
What is the quality score of LEMONTREE?
Lemon Tree Hotels Limited has a Quality Score of 60/100. 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 Lemon Tree Hotels Limited (LEMONTREE)?
Our model-based price target is the fair value of ₹118.44 (as of Oct 2, 2026) from 24 valuation models. Cautious scenario ₹60.51, optimistic scenario ₹170.18. It is a calculation from audited fundamentals, not an analyst target.
What is the Lemon Tree Hotels Limited stock forecast for 2026?
Our models put fair value at ₹118.44, about +10% upside versus a price of ₹107.67 (undervalued). Cautious scenario ₹60.51, optimistic scenario ₹170.18. The calculation is refreshed regularly with new filings.
What is the revenue of Lemon Tree Hotels Limited (LEMONTREE)?
Lemon Tree Hotels Limited reported trailing-twelve-month revenue of about ₹14.8B (latest available figure, as of Oct 2, 2026).
What growth is priced into Lemon Tree Hotels Limited (LEMONTREE)?
For today's price to be fair in a discounted-cash-flow model, Lemon Tree Hotels Limited would have to grow free cash flow by +30.8 % per year for five years (discount rate 13.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +41.8 % per year. As of Oct 2, 2026.
What discount rate (WACC) does the fair value of LEMONTREE use?
Our models discount Lemon Tree Hotels Limited at 13.9 %: a base by market capitalisation (small), 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 Lemon Tree Hotels Limited that is +30.8 % per year a year over ten years, using the same discount rate (13.9 %) and the same formula as our fair value.
How much growth has Lemon Tree Hotels Limited (LEMONTREE) delivered so far?
Over the past 5 years revenue at Lemon Tree Hotels Limited grew +41.8 % a year. The price currently implies +30.8 % 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 Lemon Tree Hotels Limited (LEMONTREE) growing?
The median revenue growth in the sector is +3.2 % a year. That is the yardstick for the growth priced into Lemon Tree Hotels Limited (+30.8 % 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 Lemon Tree Hotels Limited (LEMONTREE)?
The free-cash-flow yield on the price is 3.27 %: that much free cash flow Lemon Tree Hotels Limited produces per unit of market value. When it exceeds the discount rate of our models (13.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Lemon Tree Hotels Limited (LEMONTREE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Lemon Tree Hotels Limited it is ₹118.44 per share (as of Oct 2, 2026), against a price of ₹107.67. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Lemon Tree Hotels Limited stock overvalued or undervalued in 2026?
As of Oct 2, 2026, LEMONTREE trades below its calculated fair value: price ₹107.67, fair value ₹118.44, a gap of about +10% (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 LEMONTREE?
No. The price is what the market pays today (₹107.67); the fair value is what the company's own numbers justify (₹118.44). For Lemon Tree Hotels Limited the two are ₹10.77 per share apart. That gap is exactly why we show both numbers side by side.
How much is Lemon Tree Hotels Limited worth?
The market values Lemon Tree Hotels Limited at about ₹85.2B (market capitalisation, as of Oct 2, 2026). Per share that is ₹107.67; our models calculate a fair value of ₹118.44 per share.
What do the bullish and bearish scenarios say about LEMONTREE?
Our models span a range for Lemon Tree Hotels Limited: cautious scenario ₹60.51, base ₹118.44, optimistic ₹170.18 per share (as of Oct 2, 2026, price ₹107.67). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LEMONTREE?
Lemon Tree Hotels Limited trades at a price-to-earnings ratio of 35.1 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹118.44 is built from several models across several years. Other multiples: P/B 6.8, P/S 6.6, EV/EBITDA 15.3.
How solid is the balance sheet of Lemon Tree Hotels Limited (LEMONTREE)?
Balance-sheet figures for Lemon Tree Hotels Limited (as of Oct 2, 2026): return on equity 14.9%, debt of 0.94 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is LEMONTREE from its 52-week high?
Lemon Tree Hotels Limited trades at ₹107.67, about 38% below its 52-week high of ₹173.24 and 7% above the low of ₹100.42 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹118.44 is for.
Which stocks are comparable to Lemon Tree Hotels Limited?
From the same area (Consumer Cyclical) we also value Marriott International, Inc, Hilton Worldwide Holdings, InterContinental Hotels Group, Hyatt Hotels Corporation, 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 Lemon Tree Hotels Limited stock attractive at the current price?
The data as of Oct 2, 2026: price ₹107.67, calculated fair value ₹118.44 (+10%), Quality Score 60/100, from 24 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 LEMONTREE calculated?
We run Lemon Tree Hotels Limited through 24 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 ₹118.44, 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 14.5 % above its aggregate fair value. Lemon Tree Hotels Limited currently trades 9 % 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 Lemon Tree Hotels Limited (LEMONTREE)?
The closing price on Oct 1, 2026 was ₹107.67. Our model-based fair value is ₹118.44, about +10% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Lemon Tree Hotels Limited right now?
The model range is unusually wide (₹60.51 to ₹170.18). The outcome hinges heavily on assumptions, so read the point estimate with caution. The price sits in the lower half of our model range, the side with the larger margin of safety. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Key figures of Lemon Tree Hotels Limited
How large is the market capitalisation of Lemon Tree Hotels Limited (LEMONTREE)?
The market capitalisation of Lemon Tree Hotels Limited is ₹85.2B (≈ $885M). 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 Lemon Tree Hotels Limited (LEMONTREE)?
The price-to-sales ratio of Lemon Tree Hotels Limited is 5.51 (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 Lemon Tree Hotels Limited (LEMONTREE)?
Earnings per share at Lemon Tree Hotels Limited are ₹3.07 (price ÷ EPS = P/E 35.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Lemon Tree Hotels Limited (LEMONTREE)?
The net margin of Lemon Tree Hotels Limited is 15.7% (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 Lemon Tree Hotels Limited (LEMONTREE)?
The return on equity (ROE) of Lemon Tree Hotels Limited is 14.9% (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 Lemon Tree Hotels Limited (LEMONTREE)?
On an EBIT basis the return on assets of Lemon Tree Hotels Limited is 15.0% (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 Lemon Tree Hotels Limited (LEMONTREE)?
The operating margin of Lemon Tree Hotels Limited is 33.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Lemon Tree Hotels Limited (LEMONTREE)?
Revenue at Lemon Tree Hotels Limited is growing +9.2% versus a year earlier (3y avg +18.2%). 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 Lemon Tree Hotels Limited (LEMONTREE)?
Earnings per share at Lemon Tree Hotels Limited are growing +20.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Lemon Tree Hotels Limited (LEMONTREE) carry?
The net debt of Lemon Tree Hotels Limited is ₹19.1B (fiscal year 2026, ≈ 6.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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