Bharat Heavy Electricals Limited DCF Valuation
BHEL · Capital Goods · Current price ₹434.6
Bharat Heavy Electricals Limited cash-flow valuation
Our discounted cash flow (2-stage) values Bharat Heavy Electricals Limited at ₹62 per share. implied value is <0.2× the price (likely a data error). A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Bharat Heavy Electricals 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 Bharat Heavy Electricals 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 ₹392 – ₹479
Why this method for this business
BHEL is a capital-intensive engineering firm with cyclical earnings and a strong government mandate, making DCF and EV/EBITDA the most appropriate models. Relative PE is also relevant for benchmarking against peers.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
implied value is <0.2× the price (likely a data error)
required inputs missing
- Fair multiple (P/E) is less suitable for a capital-heavy business with volatile earnings
- Book-value residual income is not applicable for a firm with significant debt and intangible assets
What was missing
- Lack of forward EBITDA estimates
- Limited analyst coverage for precise multiple normalization
What drives it
15 inputs, grouped by how strong each claim is
- Sector-median P/E
- 56.81×
- Peers used
- 8
- EPS (TTM)
- 6.99 ₹/share
- Own-history median P/E
- 45.96×
peer-median
peer-median
computed
reconstructed (one feature, dampened — not a cap)
- Term: quality
- -8.5%
- Term: growth
- +11.2%
- Term: capital_allocation
- +8.2%
- Term: financial_strength
- +4.4%
- Term: history
- -5.7%
- Term: sector_rerating
- +0.0%
- Term: rate_regime
- +1.2%
- Term: risk
- +0.0%
quality 38/100 (weak/erratic returns) → discount
durable ~19% CAGR (ROCE 3% < 12% hurdle (growth not value-accretive)) → premium
capital allocation: rising ROCE funded by strong FCF → premium
financial strength: low leverage (D/E 0.3) → mild premium
history: market paid -19% 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)
- Premium vs sector
- +9.7%
- Fair-multiple confidence
- 74%
- Fair P/E
- 62.31×
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 Bharat Heavy Electricals 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 Bharat Heavy Electricals Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.