Estimate a company's fair value using EPS and industry P/E, and see the upside or downside versus the IPO issue price.
Fair value = EPS × industry P/EUpside / downside % = (fair value − issue price) ÷ issue price × 100If the result is positive the issue may be undervalued versus peers, if negative it may be richly pricedA rough intrinsic price derived by applying the industry's average P/E multiple to the company's earnings per share.
No. Fair value is a valuation estimate; the actual listing price is set by market demand and GMP on listing day.
Last updated: 29 Aug 2026, 22:13 IST