Bharat Heavy Electricals Intrinsic Value
BHEL Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹89.08 | ₹71.26 - ₹106.90 | -70.0% | EPS: ₹4.32, Sector P/E: 12x |
| Book Value Method | asset | ₹355.20 | ₹319.68 - ₹390.72 | +19.6% | Book Value/Share: ₹355.20, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹354.07 | ₹318.66 - ₹389.48 | +19.2% | Revenue/Share: ₹442.59, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹259.85 | ₹233.87 - ₹285.84 | -12.5% | EBITDA: ₹3080.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹427.80 | ₹342.24 - ₹513.36 | +44.1% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹89.08 | ₹80.17 - ₹97.99 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹89.08 | ₹80.17 - ₹97.99 | -70.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹215.52 | ₹193.97 - ₹237.07 | -27.4% | ROE: 6.1%, P/E Multiple: 10x |
| Graham Defensive Method | conservative | ₹185.81 | ₹167.23 - ₹204.39 | -37.4% | EPS: ₹4.32, BVPS: ₹355.20 |
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Valuation Comparison Chart
BHEL Intrinsic Value Analysis
What is the intrinsic value of BHEL?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Bharat Heavy Electricals (BHEL) is ₹215.52 (median value). With the current market price of ₹296.95, this represents a -27.4% variance from our estimated fair value.
The valuation range spans from ₹89.08 to ₹427.80, indicating ₹89.08 - ₹427.80.
Is BHEL undervalued or overvalued?
Based on our multi-method analysis, Bharat Heavy Electricals (BHEL) appears to be trading above calculated value by approximately 27.4%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 2.83 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 2.75 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 6.1% | Industry Standard: 15%+ | Below 10% | Measures shareholder return efficiency |
| Operating Margin | 8.0% | Industry Standard: 20%+ | Below 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.45x | Industry Standard: 1.0x+ | Below 0.5x | Measures asset utilization efficiency |
Related Pages for Bharat Heavy Electricals
Additional stock information and data for BHEL
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹2,192 Cr | ₹827 Cr | Positive Free Cash Flow | 7/10 |
| March 2024 | ₹-3,713 Cr | ₹-3,713 Cr | Negative Cash Flow | 3/10 |
| March 2023 | ₹-741 Cr | ₹-741 Cr | Negative Cash Flow | 3/10 |
| March 2022 | ₹660 Cr | ₹101 Cr | Positive Free Cash Flow | 7/10 |
| March 2021 | ₹560 Cr | ₹539 Cr | Positive Free Cash Flow | 8/10 |