EN DE

Bajaj Finance Limited (BAJFINANCE) Fair Value & Analysis

Financial Services · IN · Market cap ₹6.6T (≈ $69.6B) · ISIN INE296A01024

What is Bajaj Finance Limited really worth?

BF Bajaj Finance Limited BAJFINANCE · NSE
Price₹1,061
Fair Value₹397.61
Upside−62.5%
Quality48/100

Below-average quality, and trading another 167% above our fair value of ₹397.61.

Watch Bajaj Finance Limited for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card. Watch for free

Strengths

Highly profitable · 43.3% net margin
Wide moat 77/100

Risks

!Mixed Growth (revenue 5y +26.4 %/yr)
!High debt · generates free cash flow
!Mixed vs. peers (6/14)
!The models disagree: range ₹189.19 to ₹848.04
!Weak on dividend: 10 out of 100

For context

·0.51% dividend yield
Evidence: High Range ₹189.19 – ₹848.04

Fair value as of: Aug 30, 2026

From 13 valuation models · updated 6 days ago

Share price −8.5% 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 (₹848.04). The favourable scenario is already priced in.
  • The model range is unusually wide (₹189.19 to ₹848.04). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (48/100) 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.

Price vs Fair Value (5 years)

₹1,159 ₹520.43 Fair Value ₹397.61 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range ₹520.43 – ₹1,159 · fair‑value band ₹189.19 – ₹848.04 · the ₹1,061 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 Aug 30, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Bajaj Finance Limited (BAJFINANCE) currently trades at ₹1,061, while our model-based Fair Value estimate is ₹397.61, implying the stock looks roughly 166.7% overvalued today. The Quality Score stands at 48/100 (below-average quality), in the Financial Services sector. Bull case: the Earnings-Based group reads highest at a median of ₹1,070 per share, and 3 of the 13 models we run sit above the ₹1,061 price. Bear case: the Dividend Discount group reads lowest at ₹96.18, and 10 of the 13 models stay below the price. Evidence for this calculation is 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 Aug 30, 2026

Our scenario range runs from ₹189.19 (bear case) to ₹848.04 (bull case); at ₹1,061, 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 4% below its 52-week high and 35% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −48% fair-value upside, at −63%, BAJFINANCE screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹10.80 per share, which is 2.7 % 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
Growth DCF best evidence ₹553.40 ₹1,579 ₹3,302 70
DDM Multi-Stage ₹53.78 ₹96.18 ₹122.37 64
Owner Earnings ₹117.36 ₹802.62 ₹2,306 63
All 13 models by family
DCF Models
Owner Earnings ₹117.36 ₹802.62 ₹2,306 63
5Y P/E Exit ₹100.04 ₹558.67 ₹1,158 62
10Y P/E Exit ₹252.58 ₹816.52 ₹1,684 56
Earnings-Based
Graham-Dodd ₹207.98 ₹1,450 ₹2,035 61
Lynch FV ₹749.33 ₹1,070 ₹1,392 59
Dividend Discount
Gordon GGM ₹53.78 ₹117.42 ₹197.56 63
DDM Multi-Stage ₹53.78 ₹96.18 ₹122.37 64
Multiples
P/E Multiple ₹298.20 ₹397.61 ₹497.01 63
P/B Multiple ₹192.51 ₹256.68 ₹320.85 55
Asset-Based
NCAV (Graham) ₹91.67 ₹122.84 ₹183.34 54
Growth DCF
Growth DCF best evidence ₹553.40 ₹1,579 ₹3,302 70
Rev-Margin DCF ₹59.68 ₹316.69 ₹862.55 60
Economic Profit
Residual Income ₹213.61 ₹291.23 ₹1,213 61

Widest divergence: Earnings-Based (₹1,070) versus Dividend Discount (₹96.18). Highest evidence: Growth DCF (70).

Notify me when BAJFINANCE reaches fair value

Put BAJFINANCE on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.

Set up alert →

Free, no payment details. Unsubscribe anytime in one click.

Key figures & financial health

P/E ratio 34.8
P/S ratio 8.06 P/E × margin
EPS (TTM) ₹30.51 price ÷ EPS = P/E 34.8
Dividend yield 0.5% payout 17.7%
Net margin 23.2% FY2026
Return on equity 17.9% TTM
More key figures
Profitability
Return on assets (EBIT) 5.3% avg 5y
Operating margin 60.3% TTM
Growth
Revenue (TTM) ₹439B TTM
Revenue growth (YoY) +28.2% 3y avg +27.5%
EPS growth (YoY) +21.4%
Balance sheet & cash flow
Free cash flow ₹350B FY2026
Net debt ₹3.5T FY2026 · ≈ 10.0 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100

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 64
Price trend over the last 3–12 months (market factor)
52W Momentum 73
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.

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 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. 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.
+27.5%
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.
+26.4%
Avg. revenue growth/yr (21Y) 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.
+35.2%
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.
−18.8% (−19.3 + 0.5)
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
Character of growth · EPS growth decomposed (2015-2026) +30.1 % p.a.
Revenue per share +25.4 %

of which total revenue +27.6 % · buybacks/dilution −1.7 %

EBIT margin +3.8 %
Tax rate +1.5 %
Residual (interest, one-offs) −1.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

BAJFINANCE screens 167% overvalued. Compare with Visa Inc →

Share or link this analysis
𝕏 Post WhatsApp LinkedIn Reddit
For bloggers & editors: embed code + live data

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

Peer Group

Credit Services · 326 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 48 · Below median
Fair Value upside −63% · 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% · Bottom 25%
Debt / equity 2.28× · Higher than 75% of peers

Valuation Multiples vs Credit Services median · lower = cheaper

P/E (TTM) 34.8× · 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

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 35
FUTURE100 · sector 40
PAST72 · sector 31
HEALTH0 · sector 59
DIVIDEND10 · sector 55

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

Similar stocks

10 more Credit Services stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Visa Inc V $379.66 $198.27 −48%
Mastercard Incorporated MA $591.73 $221.87 −63%
American Express Company AXP $334.16 $206.40 −38%
Capital One Financial Corporation COF $215.67 $117.51 −46%
PayPal Holdings PYPL $61.47 $77.12 +25%
Shriram Finance Limited SHRIRAMFIN ₹1,134 ₹553.82 −51%
Synchrony Financial, SYF $78.05 $137.28 +76%
SoFi Technologies, Inc SOFI $18.06 $5.02 −72%
Cholamandalam Investment and Finance Company CHOLAFIN ₹1,866 ₹796.47 −57%
Tata Capital Limited TATACAP ₹375.70 ₹149.40 −60%

Compare Bajaj Finance Limited with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Financial Services stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Try a ready-made strategy

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

Stock screener Filter by region, size and sector Compare tool Two stocks side by side Extrinsic Value Calculator (Options) Splits an option premium into intrinsic and extrinsic (time) value. Peter Lynch Fair Value Formula & Calculator Apply Peter Lynch's fair value formula in seconds: fair P/E ≈ earnings growth (+ dividend) - free, with formula and example.

Frequently asked questions

Is Bajaj Finance Limited (BAJFINANCE) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of ₹397.61 versus a price of ₹1,061, about −63% upside (overvalued).
What is the fair value of BAJFINANCE?
Our model-based fair value for Bajaj Finance Limited is ₹397.61 (as of Aug 30, 2026), built from audited fundamentals. The current price: ₹1,061.
What is the quality score of BAJFINANCE?
Bajaj Finance Limited has a Quality Score of 48/100. 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 revenue of Bajaj Finance Limited (BAJFINANCE)?
Bajaj Finance Limited reported trailing-twelve-month revenue of about ₹438B (latest available figure, as of Aug 30, 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 0.51% relative to its recent price (as of Aug 30, 2026).
Free · no account needed

Watch Bajaj Finance Limited in the live analysis

One click puts Bajaj Finance Limited on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.

Watch for free →

Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.