Bajaj Auto Limited (BAJAJ-AUTO.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+25.4%

₹13,107.73

vs ₹10,453.00 price

Levered DCF

₹5,524.80

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

5.83

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	22.81×	30.45×	33.16×	18.28×	17.13×	21.86×	11.22×	17.12×
P/B	6.31×	6.34×	8.83×	3.77×	3.54×	3.89×	2.7×	3.63×
P/S	3.9×	4.3×	5.54×	2.97×	3.08×	3.67×	1.87×	2.67×
EV / EBITDA	16.79×	19.23×	25.25×	14.86×	16.13×	16.95×	8.84×	12.91×
Gross margin	27.9%	31.8%	30.6%	29.6%	28.6%	31.9%	32.4%	30.6%
Operating margin	19.7%	26.9%	25.8%	23.1%	22.6%	24.9%	24.7%	24.9%
Net margin	17.1%	14.1%	16.7%	16.2%	18.0%	16.8%	16.6%	15.6%
Current ratio	1.76×	1.68×	1.3×	1.83×	2.21×	2.51×	1.56×	1.45×
Debt / equity	0.58×	0.26×	0.06×	0×	0×	0×	0×	0.01×
Interest coverage	10.63×	35.86×	197.34×	218.34×	0×	0×	2,448.36×	1,751.33×
Dividend yield	2.4%	1.0%	1.5%	3.7%	3.8%	0.0%	10.7%	2.1%
Payout ratio	54.5%	30.5%	51.4%	66.8%	65.7%	0.2%	119.8%	35.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	27.7%	20.8%	26.6%	20.6%	20.6%	17.8%	24.1%	21.2%
Return on invested capital	14.5%	21.8%	29.1%	22.3%	20.5%	20.1%	27.1%	23.2%
Return on assets	13.9%	13.5%	19.6%	17.2%	17.6%	14.5%	19.7%	17.1%
Free cash flow yield	0.9%	-0.9%	2.3%	3.8%	3.5%	2.7%	6.1%	2.7%
Earnings yield	4.4%	3.3%	3.0%	5.5%	5.8%	4.6%	8.9%	5.8%
Enterprise value	₹2.6T	₹2.3T	₹2.6T	₹1.1T	₹1T	₹1.1T	₹582.1B	₹835.8B
Net debt / EBITDA	1.25×	0.58×	0.12×	-0.03×	-0.14×	-0.08×	-0.04×	-0.12×
Cash conversion cycle (days)	46	-5	-28	-9	-20	-23	-15	-11