Alkem Laboratories (NSE:ALKEM) Margin of Safety % (DCF Earnings Based): -67.48% (As of Jun. 25, 2026)


NSE:ALKEM Alkem Laboratories Ltd NSE:ALKEM
96 GF Score
Price ₹5,428.50
GF Value ₹6,064.54
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Alkem Laboratories Margin of Safety % (DCF Earnings Based)?

Alkem Laboratories NSE:ALKEM +0.24% 96 Margin of Safety % (DCF Earnings Based) is -67.48% as of Jun. 25, 2026. GuruFocus rates NSE:ALKEM with a GF Score™ of 96/100 and a GF Value™ of ₹6,064.54 (Modestly Undervalued). The stock has 1 warning sign investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-25), Alkem Laboratories's Predictability Rank is 5-Stars. Alkem Laboratories's intrinsic value calculated from the Discounted Earnings model is ₹3241.22 and current share price is ₹5428.50. Consequently,

Alkem Laboratories's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -67.48%.

NSE:ALKEM vs ZTS: Margin of Safety % (DCF Earnings Based) Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Alkem Laboratories's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Alkem Laboratories Margin of Safety % (DCF Earnings Based) vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Alkem Laboratories's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Alkem Laboratories's Margin of Safety % (DCF Earnings Based) falls into.


NSE:ALKEM
96GF Score
Alkem Laboratories Ltd NSE:ALKEM
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Alkem Laboratories Margin of Safety % (DCF Earnings Based) Calculation

Alkem Laboratories's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(3241.22-5428.50)/3241.22
=-67.48 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -67.48% mean?
Alkem Laboratories (NSE:ALKEM) has a Margin of Safety % (DCF Earnings Based) of -67.48% as of Jun. 25, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Alkem Laboratories.
Is Alkem Laboratories' Margin of Safety % (DCF Earnings Based) too high?
Alkem Laboratories' current Margin of Safety % (DCF Earnings Based) is -67.48%. Overall, Alkem Laboratories has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alkem Laboratories' Margin of Safety % (DCF Earnings Based) compare to ZTS?
Alkem Laboratories' Margin of Safety % (DCF Earnings Based) of -67.48% can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Drug Manufacturers company?
A good Margin of Safety % (DCF Earnings Based) depends on the Drug Manufacturers industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Alkem Laboratories. Alkem Laboratories's current Margin of Safety % (DCF Earnings Based) is -67.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alkem Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Alkem Laboratories (NSE:ALKEM) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹6,064.54, compared to a current price of ₹5,428.50 — trading 10.5% below its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -67.48%. Alkem Laboratories' overall GF Score™ is 96/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Alkem Laboratories (NSE:ALKEM), the current Margin of Safety % (DCF Earnings Based) is -67.48% as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Alkem Laboratories (NSE:ALKEM) Overvalued in 2026?

Based on GuruFocus' analysis, Alkem Laboratories stock appears to be undervalued. The current stock price of ₹5,428.50 is trading 10.5% below its estimated GF Value™ of ₹6,064.54. GuruFocus considers Alkem Laboratories to be Modestly Undervalued.

Key valuation signals for NSE:ALKEM:

  • Margin of Safety % (DCF Earnings Based): -67.48%
  • GF Value™: ₹6,064.54 vs. price of ₹5,428.50 (10.5% below fair value)
  • GF Score™: 96/100 with 1 warning sign

No single metric tells the full story. See the NSE:ALKEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Alkem Laboratories Business Description

Other Exchanges 539523:India
Address Senapati Bapat Marg, Alkem House, Devashish Building, Lower Parel, Mumbai, MH, IND, 400 013
Alkem Laboratories Ltd is an Indian pharmaceutical company engaged in the development, manufacture, and sale of pharmaceutical and nutraceutical products. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals in acute and chronic therapeutic areas, such as anti-infective, pain and analgesics, vitamins/minerals/nutrients, cardiac and Diabetology, Gynecology, neuro/central nervous system, dermatology, anti-diabetes, anti-osteoporosis, cardiovascular, and muscle relaxants, which are marketed in Indian and International markets. It operates through the pharmaceutical business segment.
96GF Score

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Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹5,428.50
Price
₹6,064.54
GF Value