Mahindra & Mahindra Valuation
Is M&M undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation 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 M&M when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: M&M (₹2058.45) is trading above our estimate of fair value (₹273.61)
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 | ₹2.29t |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.3x |
| Enterprise Value/EBITDA | 13.2x |
| PEG Ratio | 3.5x |
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 | 29.2x | ||
500570 Tata Motors | 19.6x | 19.0% | ₹3.6t |
MARUTI Maruti Suzuki India | 33.4x | 10.0% | ₹4.1t |
BAJAJ-AUTO Bajaj Auto | 31.5x | 11.5% | ₹2.4t |
505200 Eicher Motors | 32.3x | 11.3% | ₹1.2t |
M&M Mahindra & Mahindra | 20.6x | 5.9% | ₹2.3t |
Price-To-Earnings vs Peers: M&M is good value based on its Price-To-Earnings Ratio (20.6x) compared to the peer average (29.2x).
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 (20.6x) compared to the Asian Auto industry average (17.2x).
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 | 20.6x |
| Fair PE Ratio | 25.7x |
Price-To-Earnings vs Fair Ratio: M&M is good value based on its Price-To-Earnings Ratio (20.6x) compared to the estimated Fair Price-To-Earnings Ratio (25.7x).
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 | ₹2,058.45 | ₹2,012.91 -2.2% | 9.5% | ₹2,380.00 | ₹1,615.00 | n/a | 33 |
| Apr ’25 | ₹1,915.95 | ₹1,932.22 +0.8% | 9.2% | ₹2,300.00 | ₹1,557.00 | n/a | 36 |
| Mar ’25 | ₹1,972.95 | ₹1,901.81 -3.6% | 7.7% | ₹2,225.00 | ₹1,557.00 | n/a | 36 |
| 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 | n/a | 37 |
| Aug ’24 | ₹1,493.35 | ₹1,581.74 +5.9% | 11.3% | ₹1,920.00 | ₹1,190.00 | n/a | 38 |
| Jul ’24 | ₹1,453.60 | ₹1,543.54 +6.2% | 9.7% | ₹1,835.00 | ₹1,190.00 | n/a | 37 |
| Jun ’24 | ₹1,318.90 | ₹1,543.54 +17.0% | 9.7% | ₹1,835.00 | ₹1,190.00 | n/a | 37 |
| May ’24 | ₹1,226.90 | ₹1,527.03 +24.5% | 9.7% | ₹1,780.00 | ₹1,150.00 | n/a | 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 |
| Aug ’23 | ₹1,237.75 | ₹1,258.58 +1.7% | 11.8% | ₹1,643.00 | ₹875.00 | ₹1,493.35 | 40 |
| Jul ’23 | ₹1,107.35 | ₹1,169.48 +5.6% | 12.2% | ₹1,643.00 | ₹760.00 | ₹1,453.60 | 40 |
| Jun ’23 | ₹1,047.35 | ₹1,138.92 +8.7% | 11.9% | ₹1,565.00 | ₹760.00 | ₹1,318.90 | 39 |
| May ’23 | ₹922.10 | ₹1,063.45 +15.3% | 13.6% | ₹1,616.00 | ₹615.00 | ₹1,226.90 | 40 |
| Apr ’23 | ₹826.55 | ₹1,044.49 +26.4% | 11.2% | ₹1,230.00 | ₹615.00 | ₹1,158.70 | 39 |
Analyst Forecast: Target price is lower than the current share price.