CEAT Valuation
Is CEATLTD undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation 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 CEATLTD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CEATLTD (₹2932.85) is trading above our estimate of fair value (₹2029.52)
Significantly Below Fair Value: CEATLTD is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CEATLTD?
Key metric: As CEATLTD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is CEATLTD's PE Ratio? | |
|---|---|
| PE Ratio | 20.9x |
| Earnings | ₹5.66b |
| Market Cap | ₹117.75b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.1x |
| Enterprise Value/EBITDA | 9.6x |
| PEG Ratio | 1.1x |
Price to Earnings Ratio vs Peers
How does CEATLTD's PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 26.3x | ||
530007 JK Tyre & Industries | 13.6x | 18.6% | ₹100.0b |
APOLLOTYRE Apollo Tyres | 22.1x | 17.8% | ₹320.0b |
509243 TVS Srichakra | 42.4x | 19.2% | ₹27.5b |
MRF MRF | 27.1x | 10.9% | ₹528.0b |
CEATLTD CEAT | 20.9x | 19.5% | ₹117.8b |
Price-To-Earnings vs Peers: CEATLTD is good value based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (26.6x).
Price to Earnings Ratio vs Industry
How does CEATLTD's PE Ratio compare vs other companies in the IN Auto Components Industry?
| 4 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
513262 Steel Strips Wheels | 4.9x | -31.3% | US$389.55m |
INNOVATIVE Innovative Tyres & Tubes | 0.3x | n/a | US$1.22m |
505100 India Radiators | 0.8x | n/a | US$94.81k |
523415 Coventry Coil-O-Matic (Haryana) | 0.9x | n/a | US$88.40k |
| 4 Companies | Estimated Growth | Market Cap |
|---|
Price-To-Earnings vs Industry: CEATLTD is good value based on its Price-To-Earnings Ratio (20.9x) compared to the Indian Auto Components industry average (30.9x).
Price to Earnings Ratio vs Fair Ratio
What is CEATLTD'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 20.9x |
| Fair PE Ratio | 32.6x |
Price-To-Earnings vs Fair Ratio: CEATLTD is good value based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (32.6x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | ₹2,932.85 | ₹3,266.61 +11.4% | 13.2% | ₹3,959.00 | ₹2,350.00 | n/a | 18 |
| Nov ’25 | ₹2,809.55 | ₹3,236.06 +15.2% | 12.8% | ₹3,959.00 | ₹2,350.00 | n/a | 18 |
| Oct ’25 | ₹3,193.85 | ₹2,970.37 -7.0% | 14.2% | ₹3,869.00 | ₹2,000.00 | n/a | 19 |
| Sep ’25 | ₹2,756.30 | ₹2,921.63 +6.0% | 13.4% | ₹3,869.00 | ₹2,000.00 | n/a | 19 |
| Aug ’25 | ₹2,626.55 | ₹2,920.58 +11.2% | 13.5% | ₹3,869.00 | ₹2,000.00 | n/a | 19 |
| Jul ’25 | ₹2,837.30 | ₹2,880.26 +1.5% | 14.8% | ₹3,917.00 | ₹1,850.00 | n/a | 19 |
| Jun ’25 | ₹2,358.20 | ₹2,864.11 +21.5% | 15.1% | ₹3,917.00 | ₹1,850.00 | n/a | 19 |
| May ’25 | ₹2,569.00 | ₹2,865.42 +11.5% | 14.9% | ₹3,323.00 | ₹1,670.00 | n/a | 19 |
| Apr ’25 | ₹2,652.95 | ₹2,912.79 +9.8% | 16.3% | ₹3,708.00 | ₹1,670.00 | n/a | 19 |
| Mar ’25 | ₹2,843.35 | ₹2,905.42 +2.2% | 16.1% | ₹3,708.00 | ₹1,670.00 | n/a | 19 |
| Feb ’25 | ₹2,616.55 | ₹2,897.53 +10.7% | 16.2% | ₹3,708.00 | ₹1,670.00 | n/a | 19 |
| Jan ’25 | ₹2,431.00 | ₹2,387.35 -1.8% | 18.0% | ₹2,950.00 | ₹1,400.00 | n/a | 17 |
| Dec ’24 | ₹2,171.90 | ₹2,327.83 +7.2% | 20.4% | ₹2,950.00 | ₹1,400.00 | n/a | 18 |
| Nov ’24 | ₹2,111.40 | ₹2,332.00 +10.4% | 20.5% | ₹2,950.00 | ₹1,400.00 | ₹2,809.55 | 18 |
| Oct ’24 | ₹2,122.05 | ₹2,274.28 +7.2% | 22.6% | ₹3,000.00 | ₹1,200.00 | ₹3,193.85 | 18 |
| Sep ’24 | ₹2,256.05 | ₹2,264.28 +0.4% | 22.8% | ₹3,000.00 | ₹1,200.00 | ₹2,756.30 | 18 |
| Aug ’24 | ₹2,450.40 | ₹2,212.74 -9.7% | 22.1% | ₹3,000.00 | ₹1,200.00 | ₹2,626.55 | 19 |
| Jul ’24 | ₹2,077.40 | ₹1,929.67 -7.1% | 17.6% | ₹2,375.00 | ₹1,200.00 | ₹2,837.30 | 18 |
| Jun ’24 | ₹1,928.20 | ₹1,848.33 -4.1% | 16.0% | ₹2,316.00 | ₹1,200.00 | ₹2,358.20 | 18 |
| May ’24 | ₹1,557.20 | ₹1,597.94 +2.6% | 17.0% | ₹1,961.00 | ₹1,030.00 | ₹2,569.00 | 17 |
| Apr ’24 | ₹1,450.55 | ₹1,596.47 +10.1% | 16.9% | ₹1,961.00 | ₹1,030.00 | ₹2,652.95 | 17 |
| Mar ’24 | ₹1,418.90 | ₹1,594.29 +12.4% | 17.0% | ₹1,961.00 | ₹1,030.00 | ₹2,843.35 | 17 |
| Feb ’24 | ₹1,528.05 | ₹1,599.88 +4.7% | 17.1% | ₹1,961.00 | ₹1,030.00 | ₹2,616.55 | 17 |
| Jan ’24 | ₹1,642.50 | ₹1,586.71 -3.4% | 16.4% | ₹1,967.00 | ₹1,120.00 | ₹2,431.00 | 17 |
| Dec ’23 | ₹1,856.45 | ₹1,586.71 -14.5% | 16.4% | ₹1,967.00 | ₹1,120.00 | ₹2,171.90 | 17 |
| Nov ’23 | ₹1,556.10 | ₹1,338.88 -14.0% | 20.1% | ₹1,750.00 | ₹750.00 | ₹2,111.40 | 17 |
Analyst Forecast: Target price is less than 20% higher than the current share price.
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