Bajaj Finance Limited

BSE:500034 Stock Report

Market Cap: ₹4.1t

Bajaj Finance Valuation

Is 500034 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 500034 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500034 (₹6685.45) is trading above our estimate of fair value (₹2732.71)

Significantly Below Fair Value: 500034 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500034?

Key metric: As 500034 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500034. This is calculated by dividing 500034's market cap by their current earnings.
What is 500034's PE Ratio?
PE Ratio26.9x
Earnings₹153.75b
Market Cap₹4.13t

Price to Earnings Ratio vs Peers

How does 500034's PE Ratio compare to its peers?

The above table shows the PE ratio for 500034 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.4x
511218 Shriram Finance
13.4x13.8%₹1.1t
511243 Cholamandalam Investment and Finance
26.4x21.9%₹1.0t
MUTHOOTFIN Muthoot Finance
16.5x14.2%₹773.8b
SBICARD SBI Cards and Payment Services
29.3x20.7%₹646.6b
500034 Bajaj Finance
26.9x22.9%₹4.1t

Price-To-Earnings vs Peers: 500034 is expensive based on its Price-To-Earnings Ratio (26.9x) compared to the peer average (21.4x).

Price to Earnings Ratio vs Industry

How does 500034's PE Ratio compare vs other companies in the IN Consumer Finance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
523384 Maha Rashtra Apex
0.7xn/aUS$27.53m
No more companies available in this PE range
500034 26.9xIndustry Avg. 22.4xNo. of Companies10PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500034 is expensive based on its Price-To-Earnings Ratio (26.9x) compared to the Indian Consumer Finance industry average (22.4x).

Price to Earnings Ratio vs Fair Ratio

What is 500034'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.

500034 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.9x
Fair PE Ratio31.4x

Price-To-Earnings vs Fair Ratio: 500034 is good value based on its Price-To-Earnings Ratio (26.9x) compared to the estimated Fair Price-To-Earnings Ratio (31.4x).

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 500034 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹6,685.45
₹8,059.26
+20.5%
12.9%₹10,000.00₹5,700.00n/a31
Nov ’25₹6,923.80
₹8,042.16
+16.2%
12.6%₹10,000.00₹5,700.00n/a31
Oct ’25₹7,702.30
₹8,062.90
+4.7%
13.7%₹10,000.00₹5,700.00n/a30
Sep ’25₹7,206.15
₹7,932.90
+10.1%
13.2%₹10,000.00₹5,700.00n/a30
Aug ’25₹6,772.55
₹8,025.70
+18.5%
13.7%₹10,000.00₹5,700.00n/a30
Jul ’25₹7,274.80
₹8,258.25
+13.5%
12.3%₹10,000.00₹6,049.00n/a32
Jun ’25₹6,702.50
₹8,362.34
+24.8%
11.2%₹10,000.00₹6,049.00n/a32
May ’25₹6,931.05
₹8,347.15
+20.4%
11.1%₹10,000.00₹6,049.00n/a33
Apr ’25₹7,249.10
₹8,445.81
+16.5%
12.4%₹10,105.00₹6,049.00n/a31
Mar ’25₹6,571.00
₹8,627.62
+31.3%
11.4%₹10,105.00₹6,049.00n/a29
Feb ’25₹6,743.80
₹8,560.03
+26.9%
12.1%₹10,105.00₹6,049.00n/a30
Jan ’25₹7,298.45
₹8,868.25
+21.5%
11.9%₹10,000.00₹5,755.00n/a28
Dec ’24₹7,256.15
₹8,884.57
+22.4%
11.9%₹10,300.00₹5,912.00n/a28
Nov ’24₹7,473.25
₹8,807.47
+17.9%
12.0%₹10,300.00₹5,912.00₹6,923.8030
Oct ’24₹7,809.40
₹8,302.17
+6.3%
13.4%₹10,000.00₹5,520.00₹7,702.3030
Sep ’24₹7,317.00
₹8,148.07
+11.4%
12.9%₹9,650.00₹5,520.00₹7,206.1529
Aug ’24₹7,268.80
₹8,008.96
+10.2%
13.6%₹9,650.00₹5,520.00₹6,772.5527
Jul ’24₹7,159.30
₹7,136.15
-0.3%
14.7%₹9,000.00₹5,080.00₹7,274.8026
Jun ’24₹7,040.80
₹7,121.69
+1.1%
14.2%₹9,000.00₹5,080.00₹6,702.5026
May ’24₹6,280.40
₹7,136.93
+13.6%
14.7%₹9,650.00₹5,080.00₹6,931.0528
Apr ’24₹5,615.40
₹7,147.22
+27.3%
16.0%₹9,650.00₹5,028.00₹7,249.1027
Mar ’24₹6,156.80
₹7,335.44
+19.1%
14.7%₹9,650.00₹5,200.00₹6,571.0027
Feb ’24₹5,817.45
₹7,318.04
+25.8%
14.9%₹9,650.00₹5,200.00₹6,743.8027
Jan ’24₹6,574.15
₹8,015.38
+21.9%
15.2%₹9,650.00₹5,275.00₹7,298.4526
Dec ’23₹6,747.00
₹7,977.64
+18.2%
15.3%₹9,650.00₹5,275.00₹7,256.1525
Nov ’23₹7,207.55
₹8,038.88
+11.5%
15.2%₹9,650.00₹5,275.00₹7,473.2526

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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