Hero Motocorp Intrinsic Value
HEROMOTOCO Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹3139.68 | ₹2511.74 - ₹3767.62 | -46.3% | EPS: ₹261.64, Sector P/E: 12x |
| Book Value Method | asset | ₹4851.00 | ₹4365.90 - ₹5336.10 | -17.1% | Book Value/Share: ₹4851.00, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹9967.20 | ₹8970.48 - ₹10963.92 | +70.4% | Revenue/Share: ₹12459.00, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹11700.00 | ₹10530.00 - ₹12870.00 | +100.0% | EBITDA: ₹8024.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹8556.62 | ₹6845.30 - ₹10267.94 | +46.3% | CF Growth: 1.1%, Discount: 15% |
| PEG Ratio Method | growth | ₹1755.00 | ₹1579.50 - ₹1930.50 | -70.0% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹2155.91 | ₹1940.32 - ₹2371.50 | -63.1% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹11700.00 | ₹10530.00 - ₹12870.00 | +100.0% | ROE: 27.2%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹5343.91 | ₹4809.52 - ₹5878.30 | -8.7% | EPS: ₹261.64, BVPS: ₹4851.00 |
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Valuation Comparison Chart
HEROMOTOCO Intrinsic Value Analysis
What is the intrinsic value of HEROMOTOCO?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Hero Motocorp (HEROMOTOCO) is ₹5343.91 (median value). With the current market price of ₹5850.00, this represents a -8.7% variance from our estimated fair value.
The valuation range spans from ₹1755.00 to ₹11700.00, indicating ₹1755.00 - ₹11700.00.
Is HEROMOTOCO undervalued or overvalued?
Based on our multi-method analysis, Hero Motocorp (HEROMOTOCO) appears to be trading near calculated value by approximately 8.7%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 8.90 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 1.46 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 27.2% | 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 | 1.76x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
Related Pages for Hero Motocorp
Additional stock information and data for HEROMOTOCO
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹4,297 Cr | ₹3,446 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹4,923 Cr | ₹4,009 Cr | Positive Free Cash Flow | 8/10 |
| March 2023 | ₹2,614 Cr | ₹2,404 Cr | Positive Free Cash Flow | 8/10 |
| March 2022 | ₹2,104 Cr | ₹1,993 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹4,111 Cr | ₹2,967 Cr | Positive Free Cash Flow | 8/10 |