BAJAJ FINANCE LIMITED Valuation

BAJFINANCE · Financial Services · Current price ₹1,053.9

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DocStoX fair value
₹552
low confidence
Current price
₹1,054
Upside
-47.6%
P/E ratio
34.5x
P/B ratio
5.6x
Verdict
Avoid
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Is BAJAJ FINANCE LIMITED undervalued?

DocStoX estimates the fair value of BAJAJ FINANCE LIMITED at ₹552 per share, versus the current market price of ₹1,054. That puts the stock about -47.6% 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: Excess-return (book value) (₹231), Relative P/E (₹926), Analyst target (₹1,171). 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 ₹231 (bear) to ₹552 (base) to ₹1,171 (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 FINANCE LIMITED trades at a P/E of 34.5x and a P/B of 5.6x, with a dividend yield of 0.6%. 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 FINANCE 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.