Bajaj Auto Intrinsic Value

BAJAJ-AUTO • Automobiles
Current Stock Price
₹9497.50
Primary Intrinsic Value
₹3648.00
Market Cap
₹2649.8K Cr
-70.0% Downside
Median Value
₹2849.25
Value Range
₹1900 - ₹4868
Assessment
Trading Above Calculated Value
Safety Margin
-100.0%

BAJAJ-AUTO Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹3648.00 ₹2918.40 - ₹4377.60 -61.6% EPS: ₹304.00, Sector P/E: 12x
Book Value Method asset ₹1899.50 ₹1709.55 - ₹2089.45 -80.0% Book Value/Share: ₹1261.25, P/B: 1.0x
Revenue Multiple Method revenue ₹2849.25 ₹2564.33 - ₹3134.18 -70.0% Revenue/Share: ₹2269.39, P/S: 0.8x
EBITDA Multiple Method earnings ₹3799.00 ₹3419.10 - ₹4178.90 -60.0% EBITDA: ₹11692.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹3799.00 ₹3039.20 - ₹4558.80 -60.0% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹2849.25 ₹2564.33 - ₹3134.18 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹2849.25 ₹2564.33 - ₹3134.18 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹4867.67 ₹4380.90 - ₹5354.44 -48.7% ROE: 24.1%, P/E Multiple: 16x
Graham Defensive Method conservative ₹2849.25 ₹2564.33 - ₹3134.18 -70.0% EPS: ₹304.00, BVPS: ₹1261.25
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

BAJAJ-AUTO Intrinsic Value Analysis

What is the intrinsic value of BAJAJ-AUTO?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Bajaj Auto (BAJAJ-AUTO) is ₹2849.25 (median value). With the current market price of ₹9497.50, this represents a -70.0% variance from our estimated fair value.

The valuation range spans from ₹1899.50 to ₹4867.67, indicating ₹1899.50 - ₹4867.67.

Is BAJAJ-AUTO undervalued or overvalued?

Based on our multi-method analysis, Bajaj Auto (BAJAJ-AUTO) appears to be trading above calculated value by approximately 70.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 2.62 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 1.54 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 24.1% Industry Standard: 15%+ Above 15% Measures shareholder return efficiency
Operating Margin 15.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 1.17x Industry Standard: 1.0x+ Above 1.0x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹-1,406 Cr ₹-1,933 Cr Negative Cash Flow 3/10
March 2024 ₹6,558 Cr ₹6,522 Cr Positive Free Cash Flow 8/10
March 2023 ₹5,277 Cr ₹5,277 Cr Positive Free Cash Flow 8/10
March 2022 ₹4,197 Cr ₹4,197 Cr Positive Free Cash Flow 8/10
March 2021 ₹3,120 Cr ₹1,686 Cr Positive Free Cash Flow 8/10