Bajaj Auto Limited

NSEI:BAJAJ-AUTO Stock Report

Market Cap: ₹2.6t

Bajaj Auto Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 (₹9481.65) is trading above our estimate of fair value (₹2969.67)

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?

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

The above table shows the Price to Earnings ratio for BAJAJ-AUTO. This is calculated by dividing BAJAJ-AUTO's market cap by their current earnings.
What is BAJAJ-AUTO's PE Ratio?
PE Ratio35.9x
Earnings₹73.71b
Market Cap₹2.65t

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 Average31.2x
505200 Eicher Motors
32x11.1%₹1.4t
532343 TVS Motor
60.8x22.9%₹1.1t
500182 Hero MotoCorp
23.2x11.7%₹958.1b
500570 Tata Motors
8.7x1.0%₹2.9t
BAJAJ-AUTO Bajaj Auto
35.9x16.5%₹2.6t

Price-To-Earnings vs Peers: BAJAJ-AUTO is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the peer average (31.2x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BAJAJ-AUTO 35.9xIndustry Avg. 17.8xNo. of Companies9PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BAJAJ-AUTO is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the Asian Auto industry average (17.8x).

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 Ratio35.9x
Fair PE Ratio36.4x

Price-To-Earnings vs Fair Ratio: BAJAJ-AUTO is good value based on its Price-To-Earnings Ratio (35.9x) compared to the estimated Fair Price-To-Earnings Ratio (36.4x).

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 BAJAJ-AUTO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹9,481.65
₹11,085.27
+16.9%
16.9%₹14,000.00₹7,225.00n/a41
Nov ’25₹9,875.95
₹10,952.86
+10.9%
17.6%₹14,000.00₹7,225.00n/a43
Oct ’25₹12,157.45
₹9,901.74
-18.6%
18.9%₹14,000.00₹5,950.00n/a42
Sep ’25₹10,891.55
₹9,559.93
-12.2%
16.0%₹12,000.00₹5,950.00n/a42
Aug ’25₹9,730.50
₹9,461.98
-2.8%
15.7%₹12,000.00₹5,950.00n/a43
Jul ’25₹9,532.40
₹8,668.17
-9.1%
16.6%₹11,000.00₹5,732.00n/a42
Jun ’25₹9,084.75
₹8,548.74
-5.9%
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
₹7,367.24
-18.5%
16.6%₹9,400.00₹5,000.00n/a41
Mar ’25₹8,040.05
₹7,234.88
-10.0%
16.5%₹9,400.00₹4,923.00n/a42
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₹4,180.00₹9,875.9542
Oct ’24₹5,063.70
₹5,042.10
-0.4%
8.4%₹5,800.00₹4,000.00₹12,157.4540
Sep ’24₹4,668.45
₹5,014.82
+7.4%
8.8%₹5,800.00₹4,000.00₹10,891.5539
Aug ’24₹4,923.95
₹4,933.23
+0.2%
10.1%₹5,800.00₹3,785.00₹9,730.5040
Jul ’24₹4,691.55
₹4,559.53
-2.8%
8.1%₹5,400.00₹3,785.00₹9,532.4038
Jun ’24₹4,643.60
₹4,552.95
-2.0%
7.9%₹5,223.00₹3,785.00₹9,084.7538
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

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

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