CEAT Limited

BSE:500878 Stock Report

Market Cap: ₹114.3b

CEAT Valuation

Is 500878 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 500878 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500878 (₹2754.2) is trading above our estimate of fair value (₹2045.12)

Significantly Below Fair Value: 500878 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500878?

Key metric: As 500878 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500878. This is calculated by dividing 500878's market cap by their current earnings.
What is 500878's PE Ratio?
PE Ratio20.1x
Earnings₹5.66b
Market Cap₹114.34b

Price to Earnings Ratio vs Peers

How does 500878's PE Ratio compare to its peers?

The above table shows the PE ratio for 500878 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.8x
530007 JK Tyre & Industries
13.5x18.6%₹99.1b
APOLLOTYRE Apollo Tyres
21.1x17.8%₹305.7b
509243 TVS Srichakra
41.6x19.2%₹27.7b
MRF MRF
26.9x10.8%₹523.8b
500878 CEAT
19.7x19.5%₹111.4b

Price-To-Earnings vs Peers: 500878 is good value based on its Price-To-Earnings Ratio (19.7x) compared to the peer average (25.8x).

Price to Earnings Ratio vs Industry

How does 500878's PE Ratio compare vs other companies in the IN Auto Components Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
513262 Steel Strips Wheels
4.8x-31.3%US$384.06m
INNOVATIVE Innovative Tyres & Tubes
0.3xn/aUS$1.22m
505100 India Radiators
0.8xn/aUS$94.74k
523415 Coventry Coil-O-Matic (Haryana)
0.9xn/aUS$88.40k
No more companies available in this PE range
500878 20.1xIndustry Avg. 30.9xNo. of Companies18PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500878 is good value based on its Price-To-Earnings Ratio (19.7x) compared to the Indian Auto Components industry average (30.9x).

Price to Earnings Ratio vs Fair Ratio

What is 500878's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500878 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.1x
Fair PE Ratio32.5x

Price-To-Earnings vs Fair Ratio: 500878 is good value based on its Price-To-Earnings Ratio (19.7x) compared to the estimated Fair Price-To-Earnings Ratio (32.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500878 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹2,814.35
₹3,236.06
+15.0%
12.8%₹3,959.00₹2,350.00n/a18
Nov ’25₹2,806.15
₹3,236.06
+15.3%
12.8%₹3,959.00₹2,350.00n/a18
Oct ’25₹3,191.70
₹2,970.37
-6.9%
14.2%₹3,869.00₹2,000.00n/a19
Sep ’25₹2,754.80
₹2,921.63
+6.1%
13.4%₹3,869.00₹2,000.00n/a19
Aug ’25₹2,631.60
₹2,920.58
+11.0%
13.5%₹3,869.00₹2,000.00n/a19
Jul ’25₹2,837.50
₹2,880.26
+1.5%
14.8%₹3,917.00₹1,850.00n/a19
Jun ’25₹2,354.85
₹2,864.11
+21.6%
15.1%₹3,917.00₹1,850.00n/a19
May ’25₹2,563.60
₹2,865.42
+11.8%
14.9%₹3,323.00₹1,670.00n/a19
Apr ’25₹2,653.15
₹2,912.79
+9.8%
16.3%₹3,708.00₹1,670.00n/a19
Mar ’25₹2,841.25
₹2,905.42
+2.3%
16.1%₹3,708.00₹1,670.00n/a19
Feb ’25₹2,614.95
₹2,897.53
+10.8%
16.2%₹3,708.00₹1,670.00n/a19
Jan ’25₹2,431.25
₹2,387.35
-1.8%
18.0%₹2,950.00₹1,400.00n/a17
Dec ’24₹2,170.60
₹2,327.83
+7.2%
20.4%₹2,950.00₹1,400.00n/a18
Nov ’24₹2,109.20
₹2,332.00
+10.6%
20.5%₹2,950.00₹1,400.00₹2,806.1518
Oct ’24₹2,126.20
₹2,274.28
+7.0%
22.6%₹3,000.00₹1,200.00₹3,191.7018
Sep ’24₹2,255.50
₹2,264.28
+0.4%
22.8%₹3,000.00₹1,200.00₹2,754.8018
Aug ’24₹2,451.40
₹2,212.74
-9.7%
22.1%₹3,000.00₹1,200.00₹2,631.6019
Jul ’24₹2,078.30
₹1,929.67
-7.2%
17.6%₹2,375.00₹1,200.00₹2,837.5018
Jun ’24₹1,928.10
₹1,848.33
-4.1%
16.0%₹2,316.00₹1,200.00₹2,354.8518
May ’24₹1,559.50
₹1,597.94
+2.5%
17.0%₹1,961.00₹1,030.00₹2,563.6017
Apr ’24₹1,450.15
₹1,596.47
+10.1%
16.9%₹1,961.00₹1,030.00₹2,653.1517
Mar ’24₹1,417.75
₹1,594.29
+12.5%
17.0%₹1,961.00₹1,030.00₹2,841.2517
Feb ’24₹1,529.65
₹1,599.88
+4.6%
17.1%₹1,961.00₹1,030.00₹2,614.9517
Jan ’24₹1,641.40
₹1,586.71
-3.3%
16.4%₹1,967.00₹1,120.00₹2,431.2517
Dec ’23₹1,857.05
₹1,586.71
-14.6%
16.4%₹1,967.00₹1,120.00₹2,170.6017
Nov ’23₹1,556.40
₹1,338.88
-14.0%
20.1%₹1,750.00₹750.00₹2,109.2017

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

Subros

₹39.7b

Engages in the manufacture and sale of thermal products for automotive applications in India.

517168

₹601.70

7D

-1.7%

1Y

47.3%

Tata Motors

₹2.9t

Designs, develops, manufactures, and sells various automotive vehicles.

500570

₹773.70

7D

-0.07%

1Y

13.8%

Shivam Autotech

₹4.6b

Manufactures and sells auto transmission components for original equipment manufacturers in India and internationally.

SHIVAMAUTO

₹38.75

7D

9.2%

1Y

30.3%