Bharat Forge Intrinsic Value

BHARATFORG • Automobiles
Current Stock Price
₹1444.50
Primary Intrinsic Value
₹433.35
Market Cap
₹138.7K Cr
-33.5% Downside
Median Value
₹960.52
Value Range
₹433 - ₹2541
Assessment
Trading Above Calculated Value
Safety Margin
-50.4%

BHARATFORG Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹433.35 ₹346.68 - ₹520.02 -70.0% EPS: ₹25.04, Sector P/E: 12x
Book Value Method asset ₹960.52 ₹864.47 - ₹1056.57 -33.5% Book Value/Share: ₹960.52, P/B: 1.0x
Revenue Multiple Method revenue ₹1361.67 ₹1225.50 - ₹1497.84 -5.7% Revenue/Share: ₹1702.08, P/S: 0.8x
EBITDA Multiple Method earnings ₹1895.62 ₹1706.06 - ₹2085.18 +31.2% EBITDA: ₹3112.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹2541.22 ₹2032.98 - ₹3049.46 +75.9% CF Growth: 15.0%, Discount: 15%
PEG Ratio Method growth ₹433.35 ₹390.02 - ₹476.69 -70.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹433.35 ₹390.02 - ₹476.69 -70.0% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹1495.00 ₹1345.50 - ₹1644.50 +3.5% ROE: 13.0%, P/E Multiple: 12x
Graham Defensive Method conservative ₹735.63 ₹662.07 - ₹809.19 -49.1% EPS: ₹25.04, BVPS: ₹960.52
Method Types: Earnings Asset DCF Growth Dividend Conservative

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Valuation Comparison Chart

BHARATFORG Intrinsic Value Analysis

What is the intrinsic value of BHARATFORG?

Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Bharat Forge (BHARATFORG) is ₹960.52 (median value). With the current market price of ₹1444.50, this represents a -33.5% variance from our estimated fair value.

The valuation range spans from ₹433.35 to ₹2541.22, indicating ₹433.35 - ₹2541.22.

Is BHARATFORG undervalued or overvalued?

Based on our multi-method analysis, Bharat Forge (BHARATFORG) appears to be trading above calculated value by approximately 33.5%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 4.73 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 2.18 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 13.0% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 18.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.81x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹1,796 Cr ₹814 Cr Positive Free Cash Flow 7/10
March 2024 ₹1,664 Cr ₹1,331 Cr Positive Free Cash Flow 8/10
March 2023 ₹1,295 Cr ₹462 Cr Positive Free Cash Flow 7/10
March 2022 ₹506 Cr ₹161 Cr Positive Free Cash Flow 7/10
March 2021 ₹1,020 Cr ₹265 Cr Positive Free Cash Flow 7/10