Bajaj Auto Limited DCF Valuation
BAJAJ-AUTO · Automobile and Auto Components · Current price ₹10,405
Bajaj Auto Limited cash-flow valuation
Our engine did not use a discounted-cash-flow model for Bajaj Auto Limited. It routes each business to the methods that suit it, and a DCF is a poor lens where cash-flow forecasts are fragile or the business is capital-structure driven. The methods it did use, and why, are set out below. Our published estimate is ₹13,659.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Bajaj Auto Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Bajaj Auto Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹12,293 – ₹15,025
Why this method for this business
Bajaj Auto is a cyclical business with strong mid-cycle earnings power and a durable moat in the two-wheeler segment. Normalized earnings and EV/EBITDA are the most appropriate models for valuing a cyclical business with strong cash flow generation.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
Cyclical valued off mid-cycle earnings and a through-cycle EV/EBITDA (§6.6)
required inputs missing
- DCF is not suitable for a cyclical business with volatile earnings
- Book-value residual income is not appropriate for an asset-light, earnings-driven business
What was missing
- Lack of analyst dispersion data for P/E normalization
- Limited forward estimates for EV/EBITDA normalization
What drives it
23 inputs, grouped by how strong each claim is
- Revenue (TTM)
- 62,905 ₹ cr
- Net debt
- 22,713 ₹ cr
- Shares outstanding
- 27,95,08,407
- Sector-median P/E
- 17.1×
- Peers used
- 3
- EPS (TTM)
- 420.8 ₹/share
- Own-history median P/E
- 21.87×
computed
computed
computed
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- EBITDA margin (cycle median)
- 19%
- Through-cycle EV/EBITDA
- 33.71×
computed (≤5y median)
own-history (median of 3y)
- Term: quality
- +14.1%
- Term: growth
- +37.2%
- Term: capital_allocation
- +3.5%
- Term: financial_strength
- +10.0%
- Term: history
- +8.4%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 83/100 (high, stable returns) → premium
durable ~17% CAGR (ROCE 30% > hurdle) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: effectively debt-free → premium
history: market paid +28% vs sector, dampened ×0.3 (one feature, not the anchor)
sector re-rating: no sector-norm history → not used
rates: risk-free 6.9% below ~7.1% normal → higher multiple
risk: no analyst-dispersion signal available → neutral (lowers confidence, not PE)
- Mid-cycle EBITDA
- 11,952 ₹ cr
- Enterprise value
- 4,02,845.3 ₹ cr
- Net debt basis
- gross (cash unavailable)
- Premium vs sector
- +95.7%
- Fair-multiple confidence
- 79%
- Fair P/E
- 33.46×
computed
computed
note: net debt approximated by gross debt (cash unavailable)
fundamentals + macro (not capped at own history)
data completeness + term agreement
sector median × ∏(1+term) — Dynamic Fair Multiple
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Bajaj Auto Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Bajaj Auto Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.