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Bajaj Finserv Ltd (BAJAJFINSV) Fair Value & Analysis

Financial Services · IN · Market cap ₹3.3T (≈ $35.0B) · ISIN INE918I01026

What is Bajaj Finserv Ltd really worth?

BF Bajaj Finserv Ltd BAJAJFINSV · BSE
Price₹1,971
Fair Value₹796.96
Upside−59.6%
Quality32/100

Below-average quality, and trading another 147% above our fair value of ₹796.96.

As of Aug 23, 2026, the fair value of Bajaj Finserv Ltd is ₹796.96 per share against a price of ₹1,971, so the fair value sits 60% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Risks

!Expensive Growth (revenue 5y +17.8 %/yr)
!Thin margins · 6.5% net margin
!High debt · negative free cash flow
!Moderate moat 61/100
!Evidence only medium, so the estimate is less certain
Evidence: Medium Range ₹597.72 – ₹996.20

Fair value as of: Aug 23, 2026

From 9 valuation models · updated 14 days ago

Share price −4.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹996.20). The favourable scenario is already priced in.
  • Weak quality (32/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

₹2,174 ₹988.95 Fair Value ₹796.96 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.

How to read this chart

60‑month range ₹988.95 – ₹2,174 · fair‑value band ₹597.72 – ₹996.20 · the ₹1,971 price screens above the ₹796.96 fair value. Dashed = 300-day average. As of Aug 23, 2026.

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Analysis

Bajaj Finserv Ltd (BAJAJFINSV) currently trades at ₹1,971, while our model-based Fair Value estimate is ₹796.96, implying the stock looks roughly 147.3% overvalued today. The Quality Score stands at 32/100 (below-average quality), in the Financial Services sector. Bull case: the Earnings-Based group reads highest at a median of ₹1,238 per share, and 1 of the 9 models we run sit above the ₹1,971 price. Bear case: the DCF Models group reads lowest at ₹124.43, and 8 of the 9 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Bajaj Finserv Ltd generated revenue of ₹1.6T at a net margin of 6.5%. Revenue grew 19.3% year over year. It earns a return on equity of 14.6%. Net debt stands at ₹3.6T. Fundamentals as of Aug 23, 2026

Our scenario range runs from ₹597.72 (bear case) to ₹996.20 (bull case); at ₹1,971, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 10% below its 52-week high and 23% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −27% fair-value upside, at −60%, BAJAJFINSV screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ₹43.18 per share, which is 5.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
Owner Earnings best evidence ₹124.43 ₹3,081 73
Residual Income ₹465.15 ₹583.41 ₹1,524 68
DDM Multi-Stage ₹111.17 ₹198.81 ₹252.93 66
All 9 models by family
DCF Models
Owner Earnings best evidence ₹124.43 ₹3,081 73
Earnings-Based
Graham-Dodd ₹416.87 ₹2,907 ₹4,080 63
Lynch FV ₹866.42 ₹1,238 ₹1,609 61
Dividend Discount
Gordon GGM ₹111.17 ₹242.70 ₹408.35 65
DDM Multi-Stage ₹111.17 ₹198.81 ₹252.93 66
Multiples
P/E Multiple ₹597.72 ₹796.96 ₹996.20 63
P/B Multiple ₹511.72 ₹682.29 ₹852.87 55
Asset-Based
NCAV (Graham) ₹243.68 ₹326.53 ₹487.35 54
Economic Profit
Residual Income ₹465.15 ₹583.41 ₹1,524 68

Widest divergence: Earnings-Based (₹1,238) versus DCF Models (₹124.43). Highest evidence: Owner Earnings (73).

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Key figures & financial health

P/E ratio 31.1
P/S ratio 2.23 P/E × margin
EPS (TTM) ₹63.29 price ÷ EPS = P/E 31.1
Dividend yield 0.6% payout 17.4%
Net margin 7.1% FY2025
Return on equity 14.6% TTM
More key figures
Profitability
Return on assets (EBIT) 7.1% avg 5y
Operating margin 40.2% TTM
Growth
Revenue (TTM) ₹1.6T TTM
Revenue growth (YoY) +19.3% 3y avg +17.9%
EPS growth (YoY) +12.7%
Balance sheet & cash flow
Free cash flow −₹567B FY2025
Net debt ₹3.6T FY2025

Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 32/100

Of which business quality 26 · Market factors (momentum, volatility) 60

Profitability 29
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 2
Balance sheet, leverage, solvency risk
Investment 35
Disciplined investing over empire-building
Low Volatility 90
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 49
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Bajaj Finserv Ltd., through its subsidiaries, engages in the provision of financial services in India. The company operates through Life Insurance, General Insurance, Windpower, Retail Financing, and Investments and Others segments.

Full company description

Bajaj Finserv Ltd., through its subsidiaries, engages in the provision of financial services in India. The company operates through Life Insurance, General Insurance, Windpower, Retail Financing, and Investments and Others segments. It offers personal, business, home, home renovation, commercial, car, and gold loans; two- and three-wheeler loans; mortgages; education loans; unsecured and secured loans to small and medium-sized enterprises, micro, small and medium enterprises, and professionals; loans against properties and securities; financing for products, such as consumer electronics, digital, lifecare, furniture, etc.; developer financing; and lease rental discounting products. The company also provides investment products, including fixed deposits, systematic deposit plans, and mutual funds; savings products; life, health, motor, fire, engineering, liabilities, marine, crop, car, two-wheeler, pet, home, travel, and personal accident insurance products; wealth management and retirement planning services; healthcare services comprising wellness, outpatient, and inpatient services; and wallets and credit cards. In addition, it offers pocket subscription plans; bill and recharge services; digital technology services; and trading and demat account, stock broking, margin trading, and HNI and retail broking services. Further, the company owns and operates 138 windmills with total installed capacity of 65.2 megawatts. Bajaj Finserv Ltd. was incorporated in 2007 and is based in Pune, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Bajaj Finserv Ltd reported revenue of ₹1.4T in FY2025 versus ₹688B in FY2021, a compound +18.8%/yr. Reported net income was ₹98.0B in FY2025, compounding +21.1%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
₹1.4T
Latest YoY
+1.6%
Avg. revenue growth/yr (3Y) 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.
+17.9%
Avg. revenue growth/yr (5Y) 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.
+17.8%
Avg. revenue growth/yr (9Y) 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.
+21.2%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
+17.0% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+16.4%
Dividend yield0.6%
Trend 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.5Y 16.4% vs 10Y −8.1%, picking up
Operating margin (EBIT) 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.38.8% (2019) → 36.5% (2024) · falling
Worst earnings drop87% (2020) · in INR
⚠ Revenue per share shrinking 10.9%/yr over ~7Y (margins intact) Structural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Revenue +18.8%/yr
FY21 ₹688B
FY22 ₹837B
FY23 ₹1.1T
FY24 ₹1.3T
FY25 ₹1.4T
Net income +21.1%/yr
FY21 ₹45.6B
FY22 ₹64.2B
FY23 ₹81.5B
FY24 ₹88.7B
FY25 ₹98.0B

BAJAJFINSV screens 147% overvalued. Compare with ORIX Corporation →

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Cite: Fair Value Calculator (2026). "Bajaj Finserv Ltd Fair Value". https://www.fairvalue-calculator.com/stock/BAJAJFINSV.BSE

Peer Group

Financial Conglomerates · 55 stocks

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.

Quality Score 32 · Bottom 25%
Fair Value upside −60% · Below median
Return on equity (TTM) 15% · Top 25%
Return on assets 5% · Top 25%
Net margin (TTM) 6% · Below median
Operating margin (TTM) 40% · Top 25%
Revenue growth 19% · Above median
Dividend yield (TTM) 0.6% · Bottom 25%
Debt / equity 4.62× · Higher than 75% of peers

Valuation Multiples vs Financial Conglomerates median · lower = cheaper

P/E (TTM) 31.1× · Pricier than 75% of peers
P/B 4.24× · Pricier than 75% of peers
P/S (TTM) 2.11× · Pricier than median
EV/EBITDA 11.7× · Pricier than median
PEG 0.56× · Cheaper than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

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Frequently asked questions

Is Bajaj Finserv Ltd (BAJAJFINSV) overvalued or undervalued?
As of Aug 23, 2026, our model estimates a fair value of ₹796.96 versus a price of ₹1,971, about −60% upside (overvalued).
What is the fair value of BAJAJFINSV?
Our model-based fair value for Bajaj Finserv Ltd is ₹796.96 (as of Aug 23, 2026), built from audited fundamentals. The current price: ₹1,971.
What is the quality score of BAJAJFINSV?
Bajaj Finserv Ltd has a Quality Score of 32/100. 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 Bajaj Finserv Ltd (BAJAJFINSV)?
Our model-based price target is the fair value of ₹796.96 (as of Aug 23, 2026) from 9 valuation models. Cautious scenario ₹597.72, optimistic scenario ₹996.20. It is a calculation from audited fundamentals, not an analyst target.
What is the Bajaj Finserv Ltd stock forecast for 2026?
Our models put fair value at ₹796.96, about −60% upside versus a price of ₹1,971 (overvalued). Cautious scenario ₹597.72, optimistic scenario ₹996.20. The calculation is refreshed regularly with new filings.
What is the revenue of Bajaj Finserv Ltd (BAJAJFINSV)?
Bajaj Finserv Ltd reported trailing-twelve-month revenue of about ₹1.6T (latest available figure, as of Aug 23, 2026).
What is the net profit margin of BAJAJFINSV?
The net profit margin of Bajaj Finserv Ltd is about 6.5%, meaning it keeps roughly 6.5% of revenue as net income. Based on the latest reported figures.
Does Bajaj Finserv Ltd pay a dividend?
Bajaj Finserv Ltd currently shows a dividend yield of about 0.56% relative to its recent price (as of Aug 23, 2026).
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