Hero MotoCorp Limited

NSEI:HEROMOTOCO Stock Report

Market Cap: ₹846.1b

Hero MotoCorp Valuation

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

Discounted Cash Flow
Simply Wall St
₹2.08k
Fair Value
105.5% overvalued intrinsic discount
37
Number of Analysts

Below Fair Value: HEROMOTOCO (₹4274.65) is trading above our estimate of fair value (₹2079.8)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HEROMOTOCO. This is calculated by dividing HEROMOTOCO's market cap by their current earnings.
What is HEROMOTOCO's PE Ratio?
PE Ratio20.6x
Earnings₹41.52b
Market Cap₹846.11b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HEROMOTOCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.4x
532343 TVS Motor
62.7x23.1%₹1.2t
505200 Eicher Motors
34.5x11.9%₹1.5t
BAJAJ-AUTO Bajaj Auto
33.3x15.2%₹2.5t
HYUNDAI Hyundai Motor India
27x11.0%₹1.5t
HEROMOTOCO Hero MotoCorp
20.6x13.1%₹846.1b

Price-To-Earnings vs Peers: HEROMOTOCO is good value based on its Price-To-Earnings Ratio (20.6x) compared to the peer average (39.4x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HEROMOTOCO 20.6xIndustry Avg. 19.4xNo. of Companies9PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HEROMOTOCO is expensive based on its Price-To-Earnings Ratio (20.6x) compared to the Asian Auto industry average (19.4x).

Price to Earnings Ratio vs Fair Ratio

What is HEROMOTOCO'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.

HEROMOTOCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.6x
Fair PE Ratio27.4x

Price-To-Earnings vs Fair Ratio: HEROMOTOCO is good value based on its Price-To-Earnings Ratio (20.6x) compared to the estimated Fair Price-To-Earnings Ratio (27.4x).

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 HEROMOTOCO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹4,274.65
₹5,099.14
+19.3%
14.4%₹6,620.00₹3,430.00n/a37
Jan ’26₹4,184.35
₹5,306.57
+26.8%
14.8%₹6,664.00₹3,430.00n/a37
Dec ’25₹4,761.70
₹5,324.79
+11.8%
14.7%₹6,664.00₹3,430.00n/a38
Nov ’25₹5,020.50
₹5,504.32
+9.6%
15.3%₹7,000.00₹3,300.00n/a38
Oct ’25₹5,750.10
₹5,406.31
-6.0%
15.0%₹7,000.00₹3,350.00n/a39
Sep ’25₹5,455.40
₹5,378.68
-1.4%
13.9%₹6,620.00₹3,350.00n/a40
Aug ’25₹5,371.85
₹5,249.59
-2.3%
15.8%₹6,620.00₹3,450.00n/a39
Jul ’25₹5,603.10
₹5,100.31
-9.0%
15.6%₹6,450.00₹3,000.00n/a39
Jun ’25₹5,119.60
₹5,008.44
-2.2%
16.0%₹6,057.00₹3,000.00n/a39
May ’25₹4,543.05
₹4,888.32
+7.6%
16.8%₹6,057.00₹2,750.00n/a38
Apr ’25₹4,680.75
₹4,803.03
+2.6%
18.6%₹6,057.00₹2,750.00n/a39
Mar ’25₹4,507.10
₹4,811.62
+6.8%
18.6%₹6,057.00₹2,750.00n/a39
Feb ’25₹4,586.70
₹4,017.63
-12.4%
17.9%₹5,325.00₹2,750.00₹4,402.1538
Jan ’25₹4,118.55
₹3,566.67
-13.4%
15.0%₹4,579.00₹2,521.00₹4,184.3539
Dec ’24₹3,760.00
₹3,396.60
-9.7%
12.7%₹4,350.00₹2,521.00₹4,761.7040
Nov ’24₹3,092.45
₹3,269.00
+5.7%
11.7%₹3,980.00₹2,470.00₹5,020.5040
Oct ’24₹3,057.25
₹3,215.69
+5.2%
12.7%₹3,980.00₹2,344.00₹5,750.1039
Sep ’24₹2,927.40
₹3,188.73
+8.9%
12.7%₹3,980.00₹2,344.00₹5,455.4040
Aug ’24₹3,102.10
₹3,077.74
-0.8%
12.2%₹3,840.00₹2,344.00₹5,371.8538
Jul ’24₹2,910.10
₹2,957.62
+1.6%
11.5%₹3,650.00₹2,200.00₹5,603.1037
Jun ’24₹2,800.40
₹2,872.50
+2.6%
10.1%₹3,650.00₹2,200.00₹5,119.6038
May ’24₹2,558.60
₹2,824.62
+10.4%
10.4%₹3,378.00₹2,170.00₹4,543.0537
Apr ’24₹2,347.35
₹2,865.22
+22.1%
11.0%₹3,380.00₹2,150.00₹4,680.7537
Mar ’24₹2,431.10
₹2,901.05
+19.3%
10.7%₹3,380.00₹2,150.00₹4,507.1039
Feb ’24₹2,727.25
₹2,919.51
+7.0%
10.7%₹3,430.00₹2,100.00₹4,586.7039
Analyst Price Target
Consensus Narrative from 37 Analysts
₹5.10k
Fair Value
16.1% undervalued intrinsic discount
37
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 11:58
End of Day Share Price 2025/02/07 00:00
Earnings2024/12/31
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Hero MotoCorp Limited is covered by 93 analysts. 35 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Piyush ParagAlmondz Global Securities Ltd
Nitin BhasinAmbit Capital
Jinesh GandhiAmbit Capital