Bharat Heavy Electricals Limited (BHEL) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Bharat Heavy Electricals Limited stock ₹96.51, price ₹418, that is 76.9% below the price, quality 63 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range ₹41.54 – ₹464.00 · fair‑value band ₹72.38 – ₹119.87 · the ₹418.10 price screens above the ₹96.51 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Bharat Heavy Electricals Limited operates as power plant equipment manufacturer in India and internationally. The company operates in two segments: Power and Industry.
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It offers equipment supplies; spares and services; and undertakes engineering, procurement, and construction works for coal and lignite, gas, hydro and nuclear power plant, as well as for transportation, transmission, defence, aerospace, captive power plants, process, renewables, upstream and downstream oil and gas, e-mobility and energy storage, and other industries.
The company also provides coal based, gas-based, nuclear, and hydro power plants, as well as solar power systems; transportation and transmission systems; defense and aerospace products; industrial systems; energy storage system and e-mobility solutions; and hydrogen power systems.
In addition, it offers steam generators and steam generator auxiliaries, soot blowers, valves, piping systems, seamless steel tubes, pressurized fluidized bed gasifiers, steam and gas turbines, turbo generators, industrial sets, castings and forgings, condenser and heat exchangers, pumps, compressors, solar photovoltaics, and automation and control systems.
Further, the company provides software system solutions, medium voltage vacuum switchgears, on load tap changers, LT switchgears and bus ducts, transformers and reactors, capacitors, bushings, control gears, insulators and ceramics, and electrical machines.
It also provides rail transportation systems and equipment, oil field equipment, and fabricated equipment and mechanical packages. The company has a strategic collaboration with E2S Company Limited for the development of excitation systems for synchronous machines.
The company was incorporated in 1964 and is based in New Delhi, India.
Stock analysis
Bharat Heavy Electricals Limited (BHEL) currently trades at ₹418.10, while our model-based Fair Value estimate is ₹96.51, 77% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of ₹168.06 per share, and 0 of the 26 models we run sit above the ₹418.10 price.
Bear case: the Earnings-Based group reads lowest at ₹24.77, and 26 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹72.38 (bear) to ₹119.87 (bull), the price of ₹418.10 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 63/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Bharat Heavy Electricals Limited reported revenue of ₹338B in FY2026 versus ₹202B in FY2022, a compound +13.8%/yr. Reported net income was ₹16.0B in FY2026, compounding +37.6%/yr from FY2022.
Key figures
Market cap ₹1.5T (≈ $15.4B) Large · P/E ratio 50.6 · P/S ratio 3.85 · EPS (TTM) ₹8.27 · Dividend yield 0.3% · Net margin 7.6% · Return on equity 11.3% · Return on assets (EBIT) 1.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 10% below its 52-week high and 72% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −77%, BHEL screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely (₹4.07 to ₹232.67). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
Bear₹72.38Fair Value ₹96.51Bull₹119.87
Price ₹418.10 · Downside -76.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹4.14 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+23.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.1%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.7%
Start year 2021 (pandemic). Over 10 years: +2.8% a year
Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.8%
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What shareholders gained per year (last 5 years), in INR (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+37.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+36.8%
Dividend (yield on the price)0.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.base effect: 29.1% / 5.9%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−24% → 6%
2026 sits 200% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes more growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+20.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+24.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +15.3% a year for the price and +19.9% for the forecasts.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Industrial Machinery · 808 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score63 · Top 25%
Fair Value upside−76.9% · Bottom 25%
Profitability
Return on equity (12 months)11.3% · Above median
Return on assets2.1% · Below median
Net margin (12 months)7.6% · Above median
Operating margin (12 months)10.1% · Above median
Growth and dividend
Revenue growth (quarter YoY)23.8% · Top 25%
Dividend yield (12 months)0.3% · Bottom 25%
Balance sheet
Debt / equity0.00× · Lowest 25%
Valuation Multiplesvs Specialty Industrial Machinery median · lower = cheaper
P/E (12 months)50.6× · Priciest 25%
P/B5.56× · Priciest 25%
P/S (12 months)3.85× · Pricier than median
Price / free cash flow (fiscal year)27.8× · Pricier than median
EV/EBITDA40.4× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 0
FUTURE (revenue growth)100· sector 31
PAST (return on equity)45· sector 28
HEALTH (low debt)100· sector 96
DIVIDEND (yield)7· sector 29
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Bharat Heavy Electricals Limited Fair Value". https://www.fairvalue-calculator.com/stock/BHEL
Frequently asked questions
Is Bharat Heavy Electricals Limited (BHEL) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of ₹96.51 versus a price of ₹418.10, about 77% lower (overvalued).
What is the fair value of BHEL?
Our model-based fair value for Bharat Heavy Electricals Limited is ₹96.51 (as of Nov 6, 2026), built from audited fundamentals. The current price: ₹418.10.
What is the quality score of BHEL?
Bharat Heavy Electricals Limited has a Quality Score of 63/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Bharat Heavy Electricals Limited (BHEL)?
Our model-based price target is the fair value of ₹96.51 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario ₹72.38, optimistic scenario ₹119.87. It is a calculation from audited fundamentals, not an analyst target.
What is the Bharat Heavy Electricals Limited stock forecast for 2026?
Our models put fair value at ₹96.51, about 77% lower versus a price of ₹418.10 (overvalued). Cautious scenario ₹72.38, optimistic scenario ₹119.87. The calculation is refreshed regularly with new filings.
What is the revenue of Bharat Heavy Electricals Limited (BHEL)?
Bharat Heavy Electricals Limited reported trailing-twelve-month revenue of about ₹378B (latest available figure, as of Nov 6, 2026).
Does Bharat Heavy Electricals Limited pay a dividend?
Bharat Heavy Electricals Limited currently shows a dividend yield of 0.33% relative to its recent price (as of Nov 6, 2026).
What growth is priced into Bharat Heavy Electricals Limited (BHEL)?
For today's price to be fair in a discounted-cash-flow model, Bharat Heavy Electricals Limited would have to grow free cash flow by +20.1 % per year for five years (discount rate 11.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +15.7 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of BHEL use?
Our models discount Bharat Heavy Electricals Limited at 11.6 %: a base by market capitalisation (large), damped by beta 0.92, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Bharat Heavy Electricals Limited that is +20.1 % per year a year over ten years, using the same discount rate (11.6 %) and the same formula as our fair value.
How much growth has Bharat Heavy Electricals Limited (BHEL) delivered so far?
Over the past 5 years revenue at Bharat Heavy Electricals Limited grew +15.7 % a year. The price currently implies +20.1 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Bharat Heavy Electricals Limited (BHEL) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Bharat Heavy Electricals Limited (+20.1 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Bharat Heavy Electricals Limited (BHEL)?
The free-cash-flow yield on the price is 3.59 %: that much free cash flow Bharat Heavy Electricals Limited produces per unit of market value. When it exceeds the discount rate of our models (11.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Bharat Heavy Electricals Limited (BHEL)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Bharat Heavy Electricals Limited it is ₹96.51 per share (as of Nov 6, 2026), against a price of ₹418.10. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Bharat Heavy Electricals Limited stock overvalued or undervalued in 2026?
As of Nov 6, 2026, BHEL trades above its calculated fair value: price ₹418.10, fair value ₹96.51, a gap of about −77% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BHEL?
No. The price is what the market pays today (₹418.10); the fair value is what the company's own numbers justify (₹96.51). For Bharat Heavy Electricals Limited the two are ₹321.59 per share apart. That gap is exactly why we show both numbers side by side.
How much is Bharat Heavy Electricals Limited worth?
The market values Bharat Heavy Electricals Limited at about ₹1.5T (market capitalisation, as of Nov 6, 2026). Per share that is ₹418.10; our models calculate a fair value of ₹96.51 per share.
What do the bullish and bearish scenarios say about BHEL?
Our models span a range for Bharat Heavy Electricals Limited: cautious scenario ₹72.38, base ₹96.51, optimistic ₹119.87 per share (as of Nov 6, 2026, price ₹418.10). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BHEL?
Bharat Heavy Electricals Limited trades at a price-to-earnings ratio of 50.6 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹96.51 is built from several models across several years. Median P/E at fiscal year-end, 7 fiscal years (2018 to 2026), reported earnings, FY2026 ex one-offs: 53.4. Other multiples: P/B 5.6, P/S 3.9, EV/EBITDA 40.4.
How solid is the balance sheet of Bharat Heavy Electricals Limited (BHEL)?
Balance-sheet figures for Bharat Heavy Electricals Limited (as of Nov 6, 2026): return on equity 11.3%, debt of 0.00 per unit of equity. They feed the Quality Score of 63/100, which measures business quality independently of the share price.
How far is BHEL from its 52-week high?
Bharat Heavy Electricals Limited trades at ₹418.10, about 10% below its 52-week high of ₹464.00 and 72% above the low of ₹242.50 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of ₹96.51 is for.
Which stocks are comparable to Bharat Heavy Electricals Limited?
From the same area (Industrials) we also value SIE, GE Vernova Inc, Eaton Corporation, Parker-Hannifin Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Bharat Heavy Electricals Limited stock attractive at the current price?
The data as of Nov 6, 2026: price ₹418.10, calculated fair value ₹96.51 (−77%), Quality Score 63/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BHEL calculated?
We run Bharat Heavy Electricals Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹96.51, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Bharat Heavy Electricals Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Bharat Heavy Electricals Limited (BHEL)?
The closing price on Nov 5, 2026 was ₹418.10. Our model-based fair value is ₹96.51, about 77% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Bharat Heavy Electricals Limited right now?
The price sits above even our optimistic bull case (₹119.87). The favourable scenario is already priced in. Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Bharat Heavy Electricals Limited (BHEL) come from?
Earnings per share at Bharat Heavy Electricals Limited grew −1.3 % a year from 2015 to 2026. Broken into its drivers: revenue per share +0.2 %, EBIT margin +2.7 %, tax rate +1.3 %, residual (interest, one-offs) −5.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Bharat Heavy Electricals Limited
How large is the market capitalisation of Bharat Heavy Electricals Limited (BHEL)?
The market capitalisation of Bharat Heavy Electricals Limited is ₹1.5T (≈ $15.4B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Bharat Heavy Electricals Limited (BHEL)?
The price-to-sales ratio of Bharat Heavy Electricals Limited is 3.85 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Bharat Heavy Electricals Limited (BHEL)?
Earnings per share at Bharat Heavy Electricals Limited are ₹8.27 (price ÷ EPS = P/E 50.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Bharat Heavy Electricals Limited (BHEL)?
The dividend yield of Bharat Heavy Electricals Limited is 0.3% (payout 16.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Bharat Heavy Electricals Limited (BHEL)?
The net margin of Bharat Heavy Electricals Limited is 7.6% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Bharat Heavy Electricals Limited (BHEL)?
The return on equity (ROE) of Bharat Heavy Electricals Limited is 11.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Bharat Heavy Electricals Limited (BHEL)?
On an EBIT basis the return on assets of Bharat Heavy Electricals Limited is 1.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Bharat Heavy Electricals Limited (BHEL)?
The operating margin of Bharat Heavy Electricals Limited is 10.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Bharat Heavy Electricals Limited (BHEL)?
Revenue at Bharat Heavy Electricals Limited is growing +23.8% versus a year earlier (3y avg +15.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Bharat Heavy Electricals Limited (BHEL)?
Earnings per share at Bharat Heavy Electricals Limited are growing +119% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Bharat Heavy Electricals Limited (BHEL) hold?
Bharat Heavy Electricals Limited holds more cash than debt, ₹36.8B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 6, 2026