Bajaj Finance Limited (BAJFINANCE.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

-42.3%

₹557.51

vs ₹965.40 price

Levered DCF

-₹3,936.71

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

1.03

Distress 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	26.19×	32.35×	30.61×	29.48×	62.26×	69.97×	24.67×	43.31×
P/B	4.37×	5.57×	5.77×	6.24×	10.01×	8.38×	4.02×	8.78×
P/S	6.08×	8.02×	8.34×	8.58×	14.64×	12.16×	5.13×	9.72×
EV / EBITDA	31.65×	35.47×	33.31×	31.72×	57.3×	65.42×	31.15×	41.27×
Gross margin	58.1%	63.1%	64.7%	68.2%	67.4%	63.0%	62.6%	62.8%
Operating margin	43.4%	32.9%	36.4%	39.3%	31.8%	23.6%	28.9%	34.7%
Net margin	23.2%	24.8%	27.2%	29.1%	23.5%	17.4%	20.8%	22.5%
Current ratio	0.24×	0.21×	0.19×	1.07×	2.89×	2.07×	1.81×	0.62×
Debt / equity	3.22×	3×	3.05×	3.18×	3.04×	2.88×	3.36×	4.49×
Interest coverage	0×	0.89×	1.03×	1.24×	0.97×	0.64×	0.77×	0.93×
Dividend yield	0.7%	0.4%	0.4%	0.4%	0.1%	0.0%	0.7%	0.1%
Payout ratio	18.3%	13.4%	12.6%	10.5%	8.6%	0.1%	17.9%	5.8%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	16.7%	17.2%	18.8%	21.2%	16.1%	12.0%	16.3%	20.3%
Return on invested capital	4.4%	4.3%	21.5%	19.0%	12.7%	14.3%	15.7%	14.9%
Return on assets	3.4%	3.6%	3.8%	4.2%	3.3%	2.6%	3.2%	3.2%
Free cash flow yield	7.0%	-12.9%	4.3%	-12.7%	-8.6%	-0.3%	-19.2%	-17.1%
Earnings yield	3.8%	3.1%	3.3%	3.4%	1.6%	1.4%	4.1%	2.3%
Enterprise value	₹8.5T	₹8.1T	₹6.7T	₹5.1T	₹5.7T	₹4.1T	₹2.4T	₹2.6T
Net debt / EBITDA	13.08×	12.03×	11.19×	10.53×	13.06×	16.45×	14.09×	13.91×
Cash conversion cycle (days)	-21	-17	194	3,025	3,528	-18	602	-13