BAJAJ AUTO LIMITED Valuation

BAJAJ-AUTO · Automobile and Auto Components · Current price ₹10,443

Full stock page
DocStoX fair value
₹4,854
low confidence
Current price
₹10,443
Upside
-53.5%
P/E ratio
27.2x
P/B ratio
7.1x
Verdict
Avoid
Model it yourself — Earnings Yield Calculator
Opens pre-filled with BAJAJ AUTO LIMITED's latest numbers.

Is BAJAJ AUTO LIMITED undervalued?

DocStoX estimates the fair value of BAJAJ AUTO LIMITED at ₹4,854 per share, versus the current market price of ₹10,443. That puts the stock about -53.5% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹2,414), Relative P/E (₹10,966), Graham floor (₹3,466). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹2,414 (bear) to ₹4,854 (base) to ₹10,966 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

BAJAJ AUTO LIMITED trades at a P/E of 27.2x and a P/B of 7.1x, with a dividend yield of 1.5%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on BAJAJ AUTO LIMITED

DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.