Hero MotoCorp Limited (HEROMOTOCO.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

+228.2%

₹17,429.96

vs ₹5,310.00 price

Levered DCF

₹27,299.67

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

6.61

Safe zone

Rating

Overall 4 / 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	17.64×	17.18×	24.98×	16.69×	19.78×	19.95×	8.76×	14.84×
P/B	4.69×	3.9×	5.29×	2.82×	2.89×	3.78×	2.21×	3.89×
P/S	2.14×	1.85×	2.49×	1.39×	1.58×	1.91×	1.11×	1.53×
EV / EBITDA	12.1×	11.06×	15.79×	10.13×	12.17×	12.69×	5.81×	8.87×
Gross margin	25.4%	33.6%	31.8%	28.8%	27.5%	28.3%	30.8%	29.5%
Operating margin	13.1%	12.7%	12.2%	10.2%	9.6%	11.1%	11.3%	13.2%
Net margin	12.1%	10.8%	10.0%	8.3%	8.0%	9.6%	12.6%	10.3%
Current ratio	1.91×	1.8×	1.46×	1.57×	1.92×	1.75×	2.02×	1.91×
Debt / equity	0.04×	0.04×	0.03×	0.03×	0.04×	0.04×	0.03×	0.02×
Interest coverage	79.09×	76.44×	60.04×	32.88×	52.32×	73.02×	69.59×	118.49×
Dividend yield	3.5%	3.7%	2.9%	4.3%	4.2%	3.3%	6.1%	3.8%
Payout ratio	61.1%	63.9%	72.2%	71.1%	82.4%	65.7%	53.8%	56.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	26.6%	22.7%	21.2%	16.9%	14.6%	18.9%	25.3%	26.2%
Return on invested capital	19.9%	17.8%	17.3%	13.7%	12.2%	15.3%	16.5%	21.0%
Return on assets	17.2%	15.4%	14.3%	11.7%	10.3%	12.6%	18.5%	18.6%
Free cash flow yield	7.4%	4.6%	4.4%	4.3%	3.3%	6.1%	13.3%	0.1%
Earnings yield	5.7%	5.8%	4.0%	6.0%	5.1%	5.0%	11.4%	6.7%
Enterprise value	₹1T	₹755.4B	₹935.6B	₹472.5B	₹462.6B	₹585.1B	₹319.6B	₹511.7B
Net debt / EBITDA	0×	0.05×	0×	0.07×	0.11×	0.07×	0.01×	0.01×
Cash conversion cycle (days)	-34	-19	-27	-10	-15	-31	-9	-4