HERO MOTOCORP LIMITED Fair Value
HEROMOTOCO · Automobile and Auto Components · Current price ₹5,309.5
| Method | Fair value | Status |
|---|---|---|
| Residual income | ₹1,827 | 29% ROE fading to 13% over ~10 yrs, on ₹1080 book |
| Relative P/E | ₹8,186 | EPS × 28.5 peer-median P/E |
| Graham floor | ₹2,641 | Conservative floor: √(22.5 × EPS × book value/share) |
| Analyst target | ₹6,221 | Street consensus 12-month target price |
Is HERO MOTOCORP LIMITED undervalued?
DocStoX estimates the fair value of HERO MOTOCORP LIMITED at ₹4,077 per share, versus the current market price of ₹5,310. That puts the stock about -23.2% above our fair-value estimate, which we read as "Expensive". Our confidence in this estimate is low.
How this fair value is calculated
This estimate blends 4 independent methods: Residual income (₹1,827), Relative P/E (₹8,186), Graham floor (₹2,641), Analyst target (₹6,221). 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 ₹1,827 (bear) to ₹4,077 (base) to ₹8,186 (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 HERO MOTOCORP 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.