Bharat Heavy Electricals Intrinsic Value
Bharat Heavy Electricals (BHEL) median intrinsic value is ₹355.20 from 9 valuation models (range ₹121–₹805), vs current price ₹402.70 — -11.8% downside (Trading Above Median Value), margin of safety -13.4%. For current market price and key ratios, visit Bharat Heavy Electricals stock price NSE.
BHEL Valuation Methods Summary — DCF, Graham Number & P/E
Bharat Heavy Electricals intrinsic value across 9 models vs current price ₹402.70 — upside/downside and value range per method. Also explore BHEL share price data to track price trends across different timeframes.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹178.08 | ₹142.46 - ₹213.70 | -55.8% | EPS: ₹14.84, Sector P/E: 12x |
| Book Value Method | asset | ₹355.20 | ₹319.68 - ₹390.72 | -11.8% | Book Value/Share: ₹355.20, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹577.93 | ₹520.14 - ₹635.72 | +43.5% | Revenue/Share: ₹722.41, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹694.14 | ₹624.73 - ₹763.55 | +72.4% | EBITDA: ₹8052.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹427.80 | ₹342.24 - ₹513.36 | +6.2% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹120.81 | ₹108.73 - ₹132.89 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹122.28 | ₹110.05 - ₹134.51 | -69.6% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹805.40 | ₹724.86 - ₹885.94 | +100.0% | ROE: 20.9%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹344.39 | ₹309.95 - ₹378.83 | -14.5% | EPS: ₹14.84, BVPS: ₹355.20 |
BHEL Intrinsic Value vs Market Price — All Valuation Models
Bharat Heavy Electricals fair value range ₹121–₹805 vs current market price ₹402.70 across 9 valuation models. Browse BHEL cash flow statement for revenue, profit, balance sheet and cash flow data.
BHEL Intrinsic Value Analysis — Undervalued or Overvalued?
Bharat Heavy Electricals median intrinsic value ₹355.20, current price ₹402.70 — Trading Above Median Value by 11.8%, margin of safety -13.4%.
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 ₹355.20 (median value). With the current market price of ₹402.70, this represents a -11.8% variance from our estimated fair value.
The valuation range spans from ₹120.81 to ₹805.40, indicating ₹120.81 - ₹805.40.
Is BHEL undervalued or overvalued?
Based on our multi-method analysis, Bharat Heavy Electricals (BHEL) appears to be trading above median value by approximately 11.8%.
BHEL Financial Health — Key Ratios vs Industry Benchmarks
Bharat Heavy Electricals financial ratios — ROE, debt-to-equity, profit margins and liquidity vs industry benchmarks and their impact on intrinsic value.
| 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 |
| Return on Equity | 20.9% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 14.0% | Industry Standard: 20%+ | Above 10% | Indicates operational efficiency level |
| Asset Turnover Ratio | 0.74x | Industry Standard: 1.0x+ | Above 0.5x | Measures asset utilization efficiency |
BHEL Cash Flow Quality — Operating & Free Cash Flow
Bharat Heavy Electricals operating cash flow, free cash flow, quality rating and sustainability score by period — key inputs to DCF intrinsic value calculation.
| 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 |