BHEL Fair Value
BHEL · Capital Goods · Current price ₹424.95
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹69 | 6% ROE fading to 13% over ~3 yrs, on ₹75 book |
| Relative P/E | ₹321 | EPS × 69.7 peer-median P/E |
| Graham floor | ₹88 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹401 | Street consensus 12-month target price |
Is BHEL undervalued?
DocStoX estimates the fair value of BHEL at ₹189 per share, versus the current market price of ₹425. That puts the stock about -55.5% 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 4 independent methods: Residual income (₹69), Relative P/E (₹321), Graham floor (₹88), Analyst target (₹401). 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 ₹69 (bear) to ₹189 (base) to ₹401 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.
More on BHEL
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.