Bajaj Finance Limited

NSEI:BAJFINANCE Stock Report

Market Cap: ₹4.1t

Bajaj Finance Valuation

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

Below Fair Value: BAJFINANCE (₹6567.95) is trading above our estimate of fair value (₹2738.76)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BAJFINANCE. This is calculated by dividing BAJFINANCE's market cap by their current earnings.
What is BAJFINANCE's PE Ratio?
PE Ratio26.4x
Earnings₹153.75b
Market Cap₹4.06t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BAJFINANCE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.5x
511218 Shriram Finance
13.4x13.8%₹1.1t
511243 Cholamandalam Investment and Finance
27.1x21.9%₹1.0t
MUTHOOTFIN Muthoot Finance
16.2x13.9%₹757.0b
SBICARD SBI Cards and Payment Services
29.1x20.7%₹644.1b
BAJFINANCE Bajaj Finance
26.4x23.0%₹4.1t

Price-To-Earnings vs Peers: BAJFINANCE is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the peer average (21.5x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
523384 Maha Rashtra Apex
0.6xn/aUS$25.37m
No more companies available in this PE range
BAJFINANCE 26.4xIndustry Avg. 20.9xNo. of Companies9PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BAJFINANCE is expensive based on its Price-To-Earnings Ratio (26.4x) compared to the Indian Consumer Finance industry average (20.9x).

Price to Earnings Ratio vs Fair Ratio

What is BAJFINANCE'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.

BAJFINANCE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.4x
Fair PE Ratio31.3x

Price-To-Earnings vs Fair Ratio: BAJFINANCE is good value based on its Price-To-Earnings Ratio (26.4x) compared to the estimated Fair Price-To-Earnings Ratio (31.3x).

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 BAJFINANCE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹6,567.95
₹8,042.16
+22.4%
12.6%₹10,000.00₹5,700.00n/a31
Nov ’25₹6,923.60
₹8,042.16
+16.2%
12.6%₹10,000.00₹5,700.00n/a31
Oct ’25₹7,703.00
₹8,062.90
+4.7%
13.7%₹10,000.00₹5,700.00n/a30
Sep ’25₹7,200.15
₹7,932.90
+10.2%
13.2%₹10,000.00₹5,700.00n/a30
Aug ’25₹6,771.65
₹8,025.70
+18.5%
13.7%₹10,000.00₹5,700.00n/a30
Jul ’25₹7,276.75
₹8,258.25
+13.5%
12.3%₹10,000.00₹6,049.00n/a32
Jun ’25₹6,697.70
₹8,362.34
+24.9%
11.2%₹10,000.00₹6,049.00n/a32
May ’25₹6,923.55
₹8,347.15
+20.6%
11.1%₹10,000.00₹6,049.00n/a33
Apr ’25₹7,250.95
₹8,445.81
+16.5%
12.4%₹10,105.00₹6,049.00n/a31
Mar ’25₹6,571.45
₹8,627.62
+31.3%
11.4%₹10,105.00₹6,049.00n/a29
Feb ’25₹6,743.30
₹8,560.03
+26.9%
12.1%₹10,105.00₹6,049.00n/a30
Jan ’25₹7,299.05
₹8,868.25
+21.5%
11.9%₹10,000.00₹5,755.00n/a28
Dec ’24₹7,259.35
₹8,884.57
+22.4%
11.9%₹10,300.00₹5,912.00n/a28
Nov ’24₹7,471.90
₹8,807.47
+17.9%
12.0%₹10,300.00₹5,912.00₹6,923.6030
Oct ’24₹7,810.75
₹8,302.17
+6.3%
13.4%₹10,000.00₹5,520.00₹7,703.0030
Sep ’24₹7,320.60
₹8,148.07
+11.3%
12.9%₹9,650.00₹5,520.00₹7,200.1529
Aug ’24₹7,269.70
₹8,008.96
+10.2%
13.6%₹9,650.00₹5,520.00₹6,771.6527
Jul ’24₹7,160.60
₹7,136.15
-0.3%
14.7%₹9,000.00₹5,080.00₹7,276.7526
Jun ’24₹7,040.50
₹7,121.69
+1.2%
14.2%₹9,000.00₹5,080.00₹6,697.7026
May ’24₹6,280.10
₹7,136.93
+13.6%
14.7%₹9,650.00₹5,080.00₹6,923.5528
Apr ’24₹5,616.75
₹7,147.22
+27.2%
16.0%₹9,650.00₹5,028.00₹7,250.9527
Mar ’24₹6,154.85
₹7,335.44
+19.2%
14.7%₹9,650.00₹5,200.00₹6,571.4527
Feb ’24₹5,817.20
₹7,318.04
+25.8%
14.9%₹9,650.00₹5,200.00₹6,743.3027
Jan ’24₹6,575.20
₹8,015.38
+21.9%
15.2%₹9,650.00₹5,275.00₹7,299.0526
Dec ’23₹6,747.75
₹7,977.64
+18.2%
15.3%₹9,650.00₹5,275.00₹7,259.3525
Nov ’23₹7,209.50
₹8,038.88
+11.5%
15.2%₹9,650.00₹5,275.00₹7,471.9026

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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