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Bajaj Finance Limited (BAJFINANCE) Fair Value & Analysis

Financial Services · IN · Market cap ₹6.6T

BF Bajaj Finance Limited BAJFINANCE · NSE
Price₹1,145
Fair Value₹397.61
Upside-65.3%
Quality58/100
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Mixed Growth
Highly profitable · 43.3% net margin
High debt · generates free cash flow
0.52% dividend yield
Mixed vs. peers (7/14)
Wide moat 77/100
Evidence: High Range ₹265.41 – ₹1,590 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 20 days ago

Share price +10.1% over the past month.

A solid business, but screening 65% overvalued on our models.

What matters now

  • The model range is unusually wide (₹265.41 to ₹1,590). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

₹1,159 ₹440.60 Fair Value ₹397.61 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ₹440.60 – ₹1,159 · fair‑value band ₹265.41 – ₹1,590 · the ₹1,145 price screens above the ₹397.61 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

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Analysis

Bajaj Finance Limited (BAJFINANCE) currently trades at ₹1,145, while our model-based Fair Value estimate is ₹397.61, implying the stock looks roughly 65.3% overvalued today. We read business quality at 58/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Bajaj Finance Limited generated revenue of ₹438B at a net margin of 43.4%. Revenue grew 26.8% year over year. It earns a return on equity of 17.9%. Net debt stands at ₹3.5T. Fundamentals as of Jul 18, 2026

Our scenario range runs from ₹265.41 (bear case) to ₹1,590 (bull case); at ₹1,145, the current price sits within 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 near its 52-week high and 45% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at -36% fair-value upside, at -65%, BAJFINANCE screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted 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.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹553.40 ₹1,579 ₹3,302 80
Residual Income ₹213.61 ₹291.23 ₹1,213 76
Rev-Margin DCF ₹102.53 ₹404.88 ₹1,045 74
All 26 models by family
DCF Models
FCF DCF ₹611.12 ₹1,226 ₹3,236 38
Owner Earnings ₹117.36 ₹802.62 ₹2,306 31
5Y Revenue Exit ₹60.67 ₹303.02 ₹802.83 39
5Y EBITDA Exit ₹312.51 ₹812.44 ₹1,791 41
5Y P/E Exit ₹224.09 ₹877.57 ₹1,750 38
10Y Revenue Exit ₹212.23 ₹729.74 ₹993.27 36
10Y EBITDA Exit ₹411.17 ₹1,285 ₹2,771 37
10Y P/E Exit ₹345.17 ₹1,090 ₹2,271 35
Earnings-Based
Graham-Dodd ₹207.98 ₹1,450 ₹2,035 54
Lynch FV ₹749.33 ₹1,070 ₹1,392 50
PEG = 1.0 ₹749.33 ₹1,070 ₹1,392 46
EPV ₹74.57 ₹157.06 ₹230.37 59
Dividend Discount
Gordon GGM ₹53.78 ₹117.42 ₹197.56 70
DDM Multi-Stage ₹53.78 ₹96.18 ₹122.37 61
Multiples
P/E Multiple ₹458.78 ₹611.70 ₹764.63 63
P/S Multiple ₹247.24 ₹329.65 ₹412.07 58
P/B Multiple ₹389.96 ₹519.95 ₹649.93 55
EV/EBIT ₹378.95 ₹636.21 ₹893.47 53
EV/EBITDA ₹180.38 ₹371.46 ₹562.53 54
EV/Revenue ₹35.71 43
Asset-Based
NCAV (Graham) ₹91.67 ₹122.84 ₹183.34 50
Growth DCF
Growth DCF ₹553.40 ₹1,579 ₹3,302 80
Rev-Margin DCF ₹102.53 ₹404.88 ₹1,045 74
Economic Profit
Residual Income ₹213.61 ₹291.23 ₹1,213 76
ROIC Compounder ₹74.57 ₹157.06 ₹321.08 72
Growth Earnings
Growth-Adj P/E ₹965.57 ₹1,379 ₹1,793 68

Widest divergence: Growth Earnings (₹1,379) versus Dividend Discount (₹96.18). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹439B
Revenue growth (YoY) +28.2%
Net margin 43.3%
Return on equity 17.9%
Free cash flow ₹350B FY2026
P/E ratio 34.6
More key figures
Operating margin 60.3%
EPS (TTM) ₹30.51
Dividend yield 0.5%
EPS growth (YoY) +21.4%
Net debt ₹3.5T FY2026

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 46 · Market factors (momentum, volatility) 72

Profitability 42
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 98
Earnings quality: real cash, not paper profit
Fin. Strength 10
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 62
Price trend over the last 3–12 months (market factor)
52W Momentum 78
Distance to the 52-week high (market factor)
Net Issuance 38
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.

About the company

Bajaj Finance Limited operates as a deposit-taking non-banking financial company in India. The company offers financing for various products, such as consumer electronics, furniture, digital products, e-commerce purchases, retail spends, and two and three-wheelers; and personal, unsecured, home, and secured, gold, and car loans.

Full company description

Bajaj Finance Limited operates as a deposit-taking non-banking financial company in India. The company offers financing for various products, such as consumer electronics, furniture, digital products, e-commerce purchases, retail spends, and two and three-wheelers; and personal, unsecured, home, and secured, gold, and car loans. It also provides secured and unsecured loans to micro, small, and medium enterprises, SMEs, and professionals; loans against property, mutual funds, insurance policies, and shares; developer finance and lease rental discounting services; and new and used car financing, and tractor financing. In addition, the company offers commercial and rural lending; public and corporate deposits; loans against securities; micro-finance and auto financing lending; and broking and margin trade financing services. Further, it distributes life, health, and general insurance products. The company was formerly known as Bajaj Auto Finance Limited and changed its name to Bajaj Finance Limited in September 2010. The company was incorporated in 1987 and is based in Pune, India. Bajaj Finance Limited is a subsidiary of Bajaj Finserv Ltd.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Bajaj Finance Limited reported revenue of ₹820B in FY2026 versus ₹299B in FY2022, a compound +28.7%/yr. Reported net income was ₹190B in FY2026, compounding +28.3%/yr from FY2022.

Growth Quality 90/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹820B
Latest YoY
+22.1%
Avg. growth/yr (3Y)
+27.5%
Avg. growth/yr (5Y)
+26.4%
Avg. growth/yr (21Y)
+35.2%
Revenue +28.7%/yr
FY22 ₹299B
FY23 ₹395B
FY24 ₹531B
FY25 ₹671B
FY26 ₹820B
Net income +28.3%/yr
FY22 ₹70.3B
FY23 ₹115B
FY24 ₹145B
FY25 ₹166B
FY26 ₹190B

BAJFINANCE screens 65% overvalued. Compare with Visa Inc →

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Cite: Fair Value Calculator (2026). "Bajaj Finance Limited Fair Value". https://www.fairvalue-calculator.com/stock/BAJFINANCE

Peer Group

Credit Services · 333 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 58 · Above median
Fair Value upside −65% · Bottom 25%
Return on equity (TTM) 18% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 43% · Top 25%
Operating margin (TTM) 60% · Top 25%
Revenue growth 28% · Above median
Dividend yield (TTM) 0.5% · Below median
Debt / equity 2.28× · Higher than median

Valuation Multiples vs Credit Services median · lower = cheaper

P/E (TTM) 34.6× · Pricier than 75% of peers
P/B 5.76× · Pricier than 75% of peers
P/S (TTM) 14.95× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than median
EV/EBITDA 33.6× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 35
FUTURE 100 · sector 39
PAST 72 · sector 31
HEALTH 0 · sector 59
DIVIDEND 10 · sector 51

VALUE 0: the price sits above our fair-value range.

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Visa Inc V $348.97 $204.19 -41%
Mastercard Incorporated MA $537.70 $221.87 -59%
American Express Company AXP $358.44 $206.40 -42%
Shriram Finance Limited SHRIRAMFIN ₹1,024 ₹553.83 -46%
Cholamandalam Investment and Finance Company CHOLAFIN ₹1,808 ₹796.52 -56%
Tata Capital Limited TATACAP ₹360.60 ₹229.85 -36%
Power Finance Corporation PFC ₹405.10 ₹810.20 +100%
Muthoot Finance Limited MUTHOOTFIN ₹3,129 ₹3,463 +11%
Indian Railway Finance Corporation IRFC ₹88.41 ₹69.72 -21%
REC Limited RECLTD ₹352.45 ₹704.90 +100%

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Frequently asked questions

Is Bajaj Finance Limited (BAJFINANCE) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ₹397.61 versus a price of ₹1,145, about −65% (overvalued).
What is the fair value of BAJFINANCE?
Our model-based fair value for Bajaj Finance Limited is ₹397.61 (as of Jul 18, 2026), built from audited fundamentals. The current price is ₹1,145.
What is the quality score of BAJFINANCE?
Bajaj Finance Limited has a Quality Score of 58/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Bajaj Finance Limited (BAJFINANCE)?
Bajaj Finance Limited reported trailing-twelve-month revenue of about ₹438B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of BAJFINANCE?
The net profit margin of Bajaj Finance Limited is about 43.4%, meaning it keeps roughly 43.4% of revenue as net income. Based on the latest reported figures.
Does Bajaj Finance Limited pay a dividend?
Bajaj Finance Limited currently shows a dividend yield of about 0.52% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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