Is M&M 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 M&M when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: M&M (₹3073) is trading above our estimate of fair value (₹340.24)
Significantly Below Fair Value: M&M is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for M&M?
Key metric: As M&M is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
The above table shows the Price to Earnings ratio for M&M. This is calculated by dividing M&M's market cap by their current
earnings.
What is M&M's PE Ratio?
PE Ratio
28.9x
Earnings
₹118.66b
Market Cap
₹3.43t
M&M 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.
Price-To-Earnings vs Industry: M&M is expensive based on its Price-To-Earnings Ratio (28.9x) compared to the Asian Auto industry average (19.4x).
Price to Earnings Ratio vs Fair Ratio
What is M&M'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.
M&M PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
28.9x
Fair PE Ratio
33.5x
Price-To-Earnings vs Fair Ratio: M&M is good value based on its Price-To-Earnings Ratio (28.9x) compared to the estimated Fair Price-To-Earnings Ratio (33.5x).
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 M&M forecast and predictions for the stock price in 12 month’s time.
Date
Share Price
Average 1Y Price Target
Dispersion
High
Low
1Y Actual price
Analysts
Current
₹3,073.00
₹3,418.11
+11.2%
5.4%
₹3,700.00
₹2,709.00
n/a
36
Dec ’25
₹2,966.10
₹3,415.06
+15.1%
5.4%
₹3,700.00
₹2,709.00
n/a
36
Nov ’25
₹2,817.65
₹3,316.56
+17.7%
6.9%
₹3,800.00
₹2,709.00
n/a
36
Oct ’25
₹3,165.50
₹3,239.59
+2.3%
8.1%
₹3,800.00
₹2,482.00
n/a
37
Sep ’25
₹2,805.40
₹3,190.05
+13.7%
10.0%
₹3,800.00
₹1,963.00
n/a
38
Aug ’25
₹2,828.40
₹3,129.54
+10.6%
12.6%
₹3,800.00
₹1,790.00
n/a
39
Jul ’25
₹2,875.85
₹2,994.58
+4.1%
14.4%
₹3,510.00
₹1,790.00
n/a
38
Jun ’25
₹2,506.25
₹2,573.54
+2.7%
12.1%
₹3,050.00
₹1,615.00
n/a
37
May ’25
₹2,156.35
₹2,027.09
-6.0%
10.0%
₹2,550.00
₹1,615.00
n/a
35
Apr ’25
₹1,915.95
₹1,925.84
+0.5%
9.1%
₹2,300.00
₹1,557.00
n/a
38
Mar ’25
₹1,972.95
₹1,897.03
-3.8%
7.6%
₹2,225.00
₹1,557.00
n/a
38
Feb ’25
₹1,651.15
₹1,821.24
+10.3%
6.4%
₹2,100.00
₹1,557.00
n/a
37
Jan ’25
₹1,703.30
₹1,777.00
+4.3%
6.6%
₹2,100.00
₹1,400.00
n/a
36
Dec ’24
₹1,625.50
₹1,748.16
+7.5%
8.5%
₹2,100.00
₹1,203.00
₹2,966.10
38
Nov ’24
₹1,454.60
₹1,716.34
+18.0%
8.6%
₹1,978.00
₹1,203.00
₹2,817.65
38
Oct ’24
₹1,554.25
₹1,705.16
+9.7%
8.5%
₹1,978.00
₹1,203.00
₹3,165.50
38
Sep ’24
₹1,591.95
₹1,693.22
+6.4%
8.4%
₹1,978.00
₹1,203.00
₹2,805.40
37
Aug ’24
₹1,493.35
₹1,581.74
+5.9%
11.3%
₹1,920.00
₹1,190.00
₹2,828.40
38
Jul ’24
₹1,453.60
₹1,543.54
+6.2%
9.7%
₹1,835.00
₹1,190.00
₹2,875.85
37
Jun ’24
₹1,318.90
₹1,543.54
+17.0%
9.7%
₹1,835.00
₹1,190.00
₹2,506.25
37
May ’24
₹1,226.90
₹1,527.03
+24.5%
9.7%
₹1,780.00
₹1,150.00
₹2,156.35
36
Apr ’24
₹1,158.70
₹1,533.95
+32.4%
9.2%
₹1,780.00
₹1,165.00
₹1,915.95
37
Mar ’24
₹1,272.15
₹1,543.59
+21.3%
8.6%
₹1,780.00
₹1,165.00
₹1,972.95
39
Feb ’24
₹1,352.05
₹1,483.54
+9.7%
11.1%
₹1,765.00
₹900.00
₹1,651.15
39
Jan ’24
₹1,249.20
₹1,468.24
+17.5%
12.5%
₹1,790.00
₹900.00
₹1,703.30
41
Dec ’23
₹1,293.45
₹1,468.15
+13.5%
12.5%
₹1,790.00
₹900.00
₹1,625.50
41
Analyst Forecast: Target price is less than 20% higher than the current share price.