Bajaj Auto Limited

NSEI:BAJAJ-AUTO Stock Report

Market Cap: ₹2.5t

Bajaj Auto Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 BAJAJ-AUTO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BAJAJ-AUTO (₹8948.2) is trading above our estimate of fair value (₹2342.76)

Significantly Below Fair Value: BAJAJ-AUTO is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for BAJAJ-AUTO?

Other financial metrics that can be useful for relative valuation.

BAJAJ-AUTO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.3x
Enterprise Value/EBITDA24.1x
PEG Ratio2.7x

Price to Earnings Ratio vs Peers

How does BAJAJ-AUTO's PE Ratio compare to its peers?

The above table shows the PE ratio for BAJAJ-AUTO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.3x
505200 Eicher Motors
33.4x10.9%₹1.3t
500182 Hero MotoCorp
27.3x13.8%₹1.0t
532343 TVS Motor
63.1x21.7%₹1.0t
M&M Mahindra & Mahindra
25.5x7.5%₹2.9t
BAJAJ-AUTO Bajaj Auto
32.4x11.8%₹2.5t

Price-To-Earnings vs Peers: BAJAJ-AUTO is good value based on its Price-To-Earnings Ratio (32.4x) compared to the peer average (37.3x).


Price to Earnings Ratio vs Industry

How does BAJAJ-AUTO's PE Ratio compare vs other companies in the Asian Auto Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BAJAJ-AUTO is expensive based on its Price-To-Earnings Ratio (32.4x) compared to the Asian Auto industry average (18.8x).


Price to Earnings Ratio vs Fair Ratio

What is BAJAJ-AUTO'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.

BAJAJ-AUTO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.4x
Fair PE Ratio32.7x

Price-To-Earnings vs Fair Ratio: BAJAJ-AUTO is good value based on its Price-To-Earnings Ratio (32.4x) compared to the estimated Fair Price-To-Earnings Ratio (32.7x).


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 BAJAJ-AUTO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹8,948.20
₹8,548.74
-4.5%
17.2%₹10,500.00₹5,636.00n/a42
May ’25₹8,903.65
₹8,548.74
-4.0%
17.2%₹10,500.00₹5,636.00n/a42
Apr ’25₹9,042.15
₹7,411.28
-18.0%
16.3%₹9,400.00₹5,000.00n/a40
Mar ’25₹8,040.05
₹7,274.61
-9.5%
16.2%₹9,400.00₹4,923.00n/a41
Feb ’25₹7,655.75
₹7,135.71
-6.8%
15.6%₹9,000.00₹4,923.00n/a42
Jan ’25₹6,701.10
₹5,730.35
-14.5%
11.5%₹7,450.00₹4,300.00n/a40
Dec ’24₹6,046.05
₹5,549.83
-8.2%
8.9%₹6,400.00₹4,300.00n/a40
Nov ’24₹5,344.35
₹5,448.64
+2.0%
9.5%₹6,144.00₹4,180.00n/a42
Oct ’24₹5,063.70
₹5,042.10
-0.4%
8.4%₹5,800.00₹4,000.00n/a40
Sep ’24₹4,668.45
₹5,014.82
+7.4%
8.8%₹5,800.00₹4,000.00n/a39
Aug ’24₹4,923.95
₹4,933.23
+0.2%
10.1%₹5,800.00₹3,785.00n/a40
Jul ’24₹4,691.55
₹4,559.53
-2.8%
8.1%₹5,400.00₹3,785.00n/a38
Jun ’24₹4,643.60
₹4,552.95
-2.0%
7.9%₹5,223.00₹3,785.00n/a38
May ’24₹4,431.95
₹4,552.95
+2.7%
7.9%₹5,223.00₹3,785.00₹8,903.6538
Apr ’24₹3,884.75
₹4,193.46
+7.9%
6.6%₹4,564.00₹3,500.00₹9,042.1537
Mar ’24₹3,731.65
₹4,197.67
+12.5%
6.6%₹4,564.00₹3,500.00₹8,040.0539
Feb ’24₹3,811.30
₹4,199.24
+10.2%
6.8%₹4,800.00₹3,500.00₹7,655.7541
Jan ’24₹3,616.05
₹4,056.61
+12.2%
7.9%₹4,800.00₹3,300.00₹6,701.1041
Dec ’23₹3,707.60
₹4,056.61
+9.4%
7.9%₹4,800.00₹3,300.00₹6,046.0541
Nov ’23₹3,732.70
₹4,042.82
+8.3%
7.5%₹4,800.00₹3,300.00₹5,344.3544
Oct ’23₹3,527.75
₹4,140.50
+17.4%
8.0%₹4,800.00₹3,300.00₹5,063.7042
Sep ’23₹4,076.30
₹4,181.07
+2.6%
8.2%₹4,800.00₹3,300.00₹4,668.4542
Aug ’23₹3,973.30
₹4,174.50
+5.1%
8.4%₹4,800.00₹3,300.00₹4,923.9542
Jul ’23₹3,624.60
₹4,155.19
+14.6%
7.9%₹4,800.00₹3,400.00₹4,691.5542
Jun ’23₹3,720.10
₹4,176.76
+12.3%
6.7%₹4,669.00₹3,400.00₹4,643.6041
May ’23₹3,729.55
₹4,165.12
+11.7%
6.8%₹4,669.00₹3,400.00₹4,431.9542

Analyst Forecast: Target price is lower than the current share price.


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