Hero Motocorp Intrinsic Value
Hero Motocorp (HEROMOTOCO) median intrinsic value is ₹5984.54 from 10 valuation models (range ₹1868–₹12528), vs current price ₹5011.10 — +19.4% upside (Trading Below Median Value), margin of safety 16.3%. Read HEROMOTOCO dividend track record for the complete payout history and dividend yield track record.
HEROMOTOCO Valuation Methods Summary — DCF, Graham Number & P/E
Hero Motocorp intrinsic value across 10 models vs current price ₹5011.10 — upside/downside and value range per method. For current market price and key ratios, visit HEROMOTOCO screener.
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹3503.04 | ₹2802.43 - ₹4203.65 | -30.1% | EPS: ₹291.92, Sector P/E: 12x |
| Book Value Method | asset | ₹5452.75 | ₹4907.48 - ₹5998.03 | +8.8% | Book Value/Share: ₹5452.75, P/B: 1.0x |
| Revenue Multiple Method | revenue | ₹10022.20 | ₹9019.98 - ₹11024.42 | +100.0% | Revenue/Share: ₹13188.00, P/S: 0.8x |
| EBITDA Multiple Method | earnings | ₹10022.20 | ₹9019.98 - ₹11024.42 | +100.0% | EBITDA: ₹8320.00Cr, EV/EBITDA: 6x |
| Simple DCF (5Y) | dcf | ₹12527.75 | ₹10022.20 - ₹15033.30 | +150.0% | CF Growth: 15.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹1868.29 | ₹1681.46 - ₹2055.12 | -62.7% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹2405.42 | ₹2164.88 - ₹2645.96 | -52.0% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹10022.20 | ₹9019.98 - ₹11024.42 | +100.0% | ROE: 27.0%, P/E Multiple: 16x |
| Graham Defensive Method | conservative | ₹5984.54 | ₹5386.09 - ₹6582.99 | +19.4% | EPS: ₹291.92, BVPS: ₹5452.75 |
| Dividend Yield Method | dividend | ₹5285.71 | ₹4757.14 - ₹5814.28 | +5.5% | DPS: ₹185.00, Target Yield: 3.5% |
HEROMOTOCO Intrinsic Value vs Market Price — All Valuation Models
Hero Motocorp fair value range ₹1868–₹12528 vs current market price ₹5011.10 across 10 valuation models. Analyse Hero Motocorp ownership structure to track promoter, FII and institutional holdings.
HEROMOTOCO Intrinsic Value Analysis — Undervalued or Overvalued?
Hero Motocorp median intrinsic value ₹5984.54, current price ₹5011.10 — Trading Below Median Value by 19.4%, margin of safety 16.3%.
What is the intrinsic value of HEROMOTOCO?
Based on our comprehensive analysis using 10 different valuation methods, the estimated intrinsic value of Hero Motocorp (HEROMOTOCO) is ₹5984.54 (median value). With the current market price of ₹5011.10, this represents a +19.4% variance from our estimated fair value.
The valuation range spans from ₹1868.29 to ₹12527.75, indicating ₹1868.29 - ₹12527.75.
Is HEROMOTOCO undervalued or overvalued?
Based on our multi-method analysis, Hero Motocorp (HEROMOTOCO) appears to be trading below median value by approximately 19.4%.
HEROMOTOCO Financial Health — Key Ratios vs Industry Benchmarks
Hero Motocorp 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 | 10.88 | Industry Standard: 2.0+ | Above 2.0 | Measures short-term liquidity capacity |
| Return on Equity | 27.0% | 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 | 1.58x | Industry Standard: 1.0x+ | Above 1.0x | Measures asset utilization efficiency |
HEROMOTOCO Cash Flow Quality — Operating & Free Cash Flow
Hero Motocorp 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 2026 | ₹8,315 Cr | ₹6,076 Cr | Positive Free Cash Flow | 8/10 |
| 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 |