Bajaj Finance stock: fair value
BAJFINANCE.NSThe fair value of Bajaj Finance under our model is $5.03, the price is 136% above.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Significantly overvaluedIn our model the price counts as cheap below $3.87 and expensive above $7.18 (uncertainty medium, based on the price swings of the past year).
The two parts of the fair value come to $4.37 (excess return model) and $5.68 (industry comparison), and the gap between them shows how uncertain the estimate is. The price is above both.
Calculated with a cost of equity of 16%. At 17% the fair value would be $4.81, at 15% it would be $5.30.
Where the number comes from
Half from the excess return model, half from earnings times the industry P/E (15.4).
Excess return model for banks and insurers: book value plus the value of returns above the cost of equity of 16.0% (government bond yield 6.9% plus beta 1.27 times a risk premium of 7.1%).
Calculate with your own assumptionsThe calculation step by step
With these figures the excess return model arrives at $4.37 per share: book value plus the value of what the company earns above its cost of equity over time. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Step | Value |
|---|---|
| Book value per share | $2.10 |
| Stable earnings per share (analyst estimates) | $0.54 |
| Return on equity in the model (stable earnings divided by book value) | 25.7% |
| Cost of equity | 16.0% |
| Excess return per share: (return − cost) × book value | $0.21 |
| Terminal value of excess returns: excess return / (16.0% − 6.9%) | $2.27 |
| Value per share (book value plus terminal value) | $4.37 |
| Earnings per share, last twelve months | $0.37 |
| × 15.4 (industry P/E) | $5.68 |
| Fair value (average of both parts) | $5.03 |
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2026, period end 31 Mar 2026
- Currency
- Amounts in US dollars, converted at the ECB reference rate of 12 Nov 2026 ($1 = ₹94.0836)
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Strong, published since 7 Nov 2026 (in the score history since 31 Oct 2026)
- Valuation signal Overvalued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.