Hero MotoCorp Limited

NSEI:HEROMOTOCO Stock Report

Market Cap: ₹953.6b

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.

Below Fair Value: HEROMOTOCO (₹4767.85) is trading above our estimate of fair value (₹2140.79)

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 Ratio23x
Earnings₹41.38b
Market Cap₹953.65b

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 Average38.1x
532343 TVS Motor
60.1x22.9%₹1.1t
505200 Eicher Motors
31.3x11.1%₹1.3t
BAJAJ-AUTO Bajaj Auto
36x16.5%₹2.7t
HYUNDAI Hyundai Motor India
24.9x9.9%₹1.5t
HEROMOTOCO Hero MotoCorp
23x11.7%₹953.6b

Price-To-Earnings vs Peers: HEROMOTOCO is good value based on its Price-To-Earnings Ratio (23x) compared to the peer average (38.1x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
HEROMOTOCO 23.0xIndustry Avg. 17.8xNo. of Companies9PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HEROMOTOCO is expensive based on its Price-To-Earnings Ratio (23x) compared to the Asian Auto industry average (17.8x).

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 Ratio23x
Fair PE Ratio30.6x

Price-To-Earnings vs Fair Ratio: HEROMOTOCO is good value based on its Price-To-Earnings Ratio (23x) compared to the estimated Fair Price-To-Earnings Ratio (30.6x).

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₹4,767.85
₹5,324.79
+11.7%
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₹2,750.00n/a38
Jan ’25₹4,118.55
₹3,566.67
-13.4%
15.0%₹4,579.00₹2,521.00n/a39
Dec ’24₹3,760.00
₹3,396.60
-9.7%
12.7%₹4,350.00₹2,521.00n/a40
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
Jan ’24₹2,738.85
₹2,903.36
+6.0%
10.6%₹3,430.00₹2,150.00₹4,118.5539
Dec ’23₹2,871.80
₹2,903.28
+1.1%
10.5%₹3,430.00₹2,150.00₹3,760.0040
Nov ’23₹2,673.15
₹2,953.37
+10.5%
10.0%₹3,430.00₹2,150.00₹3,092.4541

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

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