BHEL Valuation
BHEL · Capital Goods · Current price ₹424.95
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.
Valuation multiples
BHEL trades at a P/E of 92.4x and a P/B of 5.4x, with a dividend yield of 0.3%. 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 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.