Mahindra & Mahindra Valuation
Is M&M undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6Valuation 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 (₹3183.65) is trading above our estimate of fair value (₹368.45)
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?
Other financial metrics that can be useful for relative valuation.
What is M&M's n/a Ratio? | |
---|---|
n/a | 0x |
n/a | n/a |
Market Cap | ₹3.55t |
Key Statistics | |
---|---|
Enterprise Value/Revenue | 3.1x |
Enterprise Value/EBITDA | 17.6x |
PEG Ratio | 3.1x |
Price to Earnings Ratio vs Peers
How does M&M's PE Ratio compare to its peers?
Company | Forward PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 41.8x | ||
MARUTI Maruti Suzuki India | 28.9x | 8.3% | ₹4.2t |
500570 Tata Motors | 12.3x | 1.8% | ₹4.0t |
BAJAJ-AUTO Bajaj Auto | 44.3x | 12.9% | ₹3.5t |
532343 TVS Motor | 81.7x | 23.7% | ₹1.4t |
M&M Mahindra & Mahindra | 32.1x | 10.5% | ₹3.5t |
Price-To-Earnings vs Peers: M&M is good value based on its Price-To-Earnings Ratio (32.1x) compared to the peer average (41.8x).
Price to Earnings Ratio vs Industry
How does M&M's PE Ratio compare vs other companies in the Asian Auto Industry?
Price-To-Earnings vs Industry: M&M is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the Asian Auto industry average (15.8x).
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.
Fair Ratio | |
---|---|
Current PE Ratio | 32.1x |
Fair PE Ratio | 32x |
Price-To-Earnings vs Fair Ratio: M&M is expensive based on its Price-To-Earnings Ratio (32.1x) compared to the estimated Fair Price-To-Earnings Ratio (32x).
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 | ₹3,183.65 | ₹3,223.11 +1.2% | 7.8% | ₹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 | n/a | 38 |
Nov ’24 | ₹1,454.60 | ₹1,716.34 +18.0% | 8.6% | ₹1,978.00 | ₹1,203.00 | n/a | 38 |
Oct ’24 | ₹1,554.25 | ₹1,705.16 +9.7% | 8.5% | ₹1,978.00 | ₹1,203.00 | n/a | 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 |
Nov ’23 | ₹1,354.05 | ₹1,409.00 +4.1% | 12.3% | ₹1,765.00 | ₹900.00 | ₹1,454.60 | 41 |
Oct ’23 | ₹1,268.20 | ₹1,396.10 +10.1% | 12.9% | ₹1,765.00 | ₹900.00 | ₹1,554.25 | 40 |
Sep ’23 | ₹1,312.05 | ₹1,377.15 +5.0% | 11.3% | ₹1,765.00 | ₹925.00 | ₹1,591.95 | 39 |
Analyst Forecast: Target price is less than 20% higher than the current share price.