Coffee Day Enterprises — Peer Comparison

How the peer fair value is calculated and which companies were used as benchmarks.

Peer selection

Peers are selected from the same Consumer Services industry. 8 companies were matched as valid comparables.

Same-industry peers share similar business models, cost structures, and growth prospects — making them the most appropriate benchmarks for valuation multiples.

Peer comparison table

Consumer Services · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Coffee Day Enterprises COFFEEDAY · you	₹645 Cr	2.3×	0.2×	0.1×	7.3%	18.2%	6.5%
Sector median	—	68.7×	7.3×	37.5×	6.5%	0.8%	22.2%
Electronics Mart India Limited EMIL	₹6,823 Cr	69.0×	4.5×	15.7×	6.6%	1.5%	9.7%
V-Mart Retail Limited VMART	₹6,424 Cr	46.7×	9.1×	—	19.4%	0.0%	—
Jeena Sikho Lifecare Limited JSLL	₹6,370 Cr	29.7×	14.1×	17.6×	47.5%	27.7%	35.2%
Le Travenues Technology Limited IXIGO	₹6,329 Cr	99.6×	3.7×	75.8×	3.5%	5.9%	34.8%
SIS LIMITED SIS	₹6,078 Cr	95.4×	5.5×	—	5.8%	0.0%	—
India Tourism Development Corporation Limited ITDC	₹5,681 Cr	68.7×	13.4×	57.5×	19.6%	15.5%	5.0%
Thomas Cook (India) Limited THOMASCOOK	₹4,979 Cr	40.6×	2.6×	—	6.4%	0.1%	—
Shoppers Stop Limited SHOPERSTOP	₹4,658 Cr	-103.3×	16.4×	—	-15.9%	-0.0%	—

Peer comparison verdict

Coffee trades at a discount to sector peers on P/E (2.3× vs median 68.7×). This may signal undervaluation — or reflect lower expected growth or higher perceived risk versus the peer group.

How the peer fair value is calculated

Three valuation methods are weighted by sector. Each gives a fair value based on how sector peers are currently priced.

Method breakdown

35% weight · 7 peers

Sector median PE68.7×

Fair value via PE₹911

25% weight · 8 peers

Sector median PB7.3×

Fair value via PB₹1,116

EV/EBITDA

40% weight · 4 peers

Sector median EV/EBITDA37.5×

Fair value via EV/EBITDA₹11,455

Blended peer fair value₹5,180

Why median? Why these weights?

Median over mean: The sector median is used instead of the average because valuation multiples have extreme outliers — one high-growth company at 200× P/E would dramatically skew a mean. The median gives the middle value in the peer set, which better represents typical pricing.

Sector-specific weights: The weight given to each method reflects what matters most in this sector. For banks, P/B dominates because their value is tied to book assets. For IT companies, P/E carries the most weight because earnings quality matters more than asset base. For capital-intensive businesses, EV/EBITDA accounts for varying debt levels across peers and removes financing structure bias.

Limitations of peer comparison

Peer comparison assumes comparable companies are truly comparable — which is never perfectly true. Sector classifications can be imperfect: a conglomerate classified as "IT" may also have significant manufacturing revenue. Small peer counts (below 5) reduce confidence, as a single outlier can skew the sector median. When the entire sector is broadly expensive, peer comparison will show even an expensive stock as "fairly valued" relative to its peers.

The peer fair value shown is an algorithmic estimate based on publicly available financial data. It is not investment advice or a recommendation to buy, sell, or hold any security. Please consult a SEBI-registered investment adviser before making any investment decision.