HERO MOTOCORP LIMITED Valuation

HEROMOTOCO · Automobile and Auto Components · Current price ₹4,909.9

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DocStoX fair value
₹3,631
low confidence
Current price
₹4,910
Upside
-26.0%
P/E ratio
17.1x
P/B ratio
4.5x
Verdict
Expensive
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Is HERO MOTOCORP LIMITED undervalued?

DocStoX estimates the fair value of HERO MOTOCORP LIMITED at ₹3,631 per share, versus the current market price of ₹4,910. That puts the stock about -26.0% 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 3 independent methods: Residual income (₹1,794), Relative P/E (₹8,186), Graham floor (₹2,641). 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 ₹1,794 (bear) to ₹3,631 (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.

Valuation multiples

HERO MOTOCORP LIMITED trades at a P/E of 17.1x and a P/B of 4.5x, with a dividend yield of 3.8%. 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 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.