CEAT Valuation

Is CEATLTD 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 CEATLTD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CEATLTD (₹2503.8) is trading above our estimate of fair value (₹2045.75)

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?

Other financial metrics that can be useful for relative valuation.

CEATLTD 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/Revenue1.1x
Enterprise Value/EBITDA8.3x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CEATLTD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.5x
530007 JK Tyre & Industries
14.6x17.2%₹106.7b
APOLLOTYRE Apollo Tyres
16.4x10.8%₹303.3b
509243 TVS Srichakra
30.7x7.6%₹32.9b
500168 Goodyear India
20.3xn/a₹26.6b
15.2x7.3%₹105.3b

Price-To-Earnings vs Peers: CEATLTD is good value based on its Price-To-Earnings Ratio (15.2x) compared to the peer average (20.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CEATLTD is good value based on its Price-To-Earnings Ratio (15.2x) compared to the Indian Auto Components industry average (30.5x).


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.

CEATLTD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.2x
Fair PE Ratio19.7x

Price-To-Earnings vs Fair Ratio: CEATLTD is good value based on its Price-To-Earnings Ratio (15.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.7x).


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 CEATLTD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹2,503.80
₹2,870.68
+14.7%
15.1%₹3,400.00₹1,670.00n/a19
Apr ’25₹2,652.95
₹2,912.79
+9.8%
16.3%₹3,708.00₹1,670.00n/a19
Mar ’25₹2,843.35
₹2,905.42
+2.2%
16.1%₹3,708.00₹1,670.00n/a19
Feb ’25₹2,616.55
₹2,897.53
+10.7%
16.2%₹3,708.00₹1,670.00n/a19
Jan ’25₹2,431.00
₹2,387.35
-1.8%
18.0%₹2,950.00₹1,400.00n/a17
Dec ’24₹2,171.90
₹2,327.83
+7.2%
20.4%₹2,950.00₹1,400.00n/a18
Nov ’24₹2,111.40
₹2,332.00
+10.4%
20.5%₹2,950.00₹1,400.00n/a18
Oct ’24₹2,122.05
₹2,274.28
+7.2%
22.6%₹3,000.00₹1,200.00n/a18
Sep ’24₹2,256.05
₹2,264.28
+0.4%
22.8%₹3,000.00₹1,200.00n/a18
Aug ’24₹2,450.40
₹2,212.74
-9.7%
22.1%₹3,000.00₹1,200.00n/a19
Jul ’24₹2,077.40
₹1,929.67
-7.1%
17.6%₹2,375.00₹1,200.00n/a18
Jun ’24₹1,928.20
₹1,848.33
-4.1%
16.0%₹2,316.00₹1,200.00n/a18
May ’24₹1,557.20
₹1,597.94
+2.6%
17.0%₹1,961.00₹1,030.00n/a17
Apr ’24₹1,450.55
₹1,596.47
+10.1%
16.9%₹1,961.00₹1,030.00₹2,652.9517
Mar ’24₹1,418.90
₹1,594.29
+12.4%
17.0%₹1,961.00₹1,030.00₹2,843.3517
Feb ’24₹1,528.05
₹1,599.88
+4.7%
17.1%₹1,961.00₹1,030.00₹2,616.5517
Jan ’24₹1,642.50
₹1,586.71
-3.4%
16.4%₹1,967.00₹1,120.00₹2,431.0017
Dec ’23₹1,856.45
₹1,586.71
-14.5%
16.4%₹1,967.00₹1,120.00₹2,171.9017
Nov ’23₹1,556.10
₹1,338.88
-14.0%
20.1%₹1,750.00₹750.00₹2,111.4017
Oct ’23₹1,573.60
₹1,290.63
-18.0%
19.2%₹1,635.00₹750.00₹2,122.0516
Sep ’23₹1,412.05
₹1,253.13
-11.3%
17.2%₹1,635.00₹750.00₹2,256.0516
Aug ’23₹1,257.50
₹1,237.65
-1.6%
16.7%₹1,635.00₹750.00₹2,450.4017
Jul ’23₹937.25
₹1,115.94
+19.1%
15.9%₹1,425.00₹750.00₹2,077.4016
Jun ’23₹1,013.55
₹1,145.88
+13.1%
14.1%₹1,425.00₹750.00₹1,928.2017
May ’23₹1,124.75
₹1,174.22
+4.4%
12.6%₹1,487.00₹840.00₹1,557.2018
Apr ’23₹949.95
₹1,182.11
+24.4%
11.8%₹1,487.00₹840.00₹1,450.5519

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


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