1. MARKETS
  2. SECTOR : GENERAL INDUSTRIALS
  3. INDUSTRY : HEAVY ELECTRICAL EQUIPMENT
  4. BHARAT HEAVY ELECTRICALS LTD.
Bharat Heavy Electricals Ltd. NSE: BHEL | BSE: 500103
Mid-range Performer
In 2 Starfolio Baskets
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277.15 -2.25 (-0.81%)
57.47% Gain from 52W Low
1.1M
NSE+BSE Volume

NSE 30 Dec, 2025 10:51 AM (IST)

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Analyze undervaluation/ overvaluation of Bharat Heavy Electricals with current and 1 Year Forward PE

INSIGHT
Bharat Heavy Electricals is overvalued at current PE, but undervalued on future earnings estimates
Right Now : Current PE vs 5 year Average PE
Overvalued
Fair price

Based on 5Yr Average PE

196.7
Upside

Current PE versus 5Yr Average PE

-29.0 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Undervalued
Fair price

Based on 1Yr Forward EPS

577.5
Upside

5 Yr Average PE & 1Yr Forward EPS

108.4 %
Info: The Bharat Heavy Electricals's current PE is 172.78 ,while its 5 year PE average is 122.6. Its forward PE based on analyst estimates is 58.8
Note: The forward PE ratio (or forward price-to-earnings ratio) is calculated by dividing the current share price of a company by the estimated(1Yr) future (“forward”) earnings per share (EPS) of that company.

Analyze undervaluation/ overvaluation of Bharat Heavy Electricals with historical PE and PBV ratios

from 30 Dec, 2023 to 29 Dec, 2025

Standalone PE

Neutral zone

43.4% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 320 days, Bharat Heavy Electricals traded 139 (43.4%) days below the current PE of on Standalone basis.

Consolidated PE

Neutral zone

44.4% into PE buy sell zone

% time spent below current PE
0 20 40 60 80 100
Strong upside potential
Gains already realized

Out of 320 days, Bharat Heavy Electricals traded 142 (44.4%) days below the current PE of on Consolidated basis.

Note: This is a reverse percentile score. Values close to 100% are bad while values close to 0% are good. Days when PE is negative are not considered in the analysis
44.4%

Neutral zone

% Days traded below current PE

172.8
 

Current PE

296.6
 

Average PE

177.9
 

Median PE

577.5
 

Forward 1Y Price

58.8
 

Forward PE

4.7
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
120-132
 20 6.2% 20 6.2%
132-138
 13 4.1% 33 10.3%
138-153
 31 9.7% 64 20.0%
153-167
 48 15.0% 112 35.0%
167-178
Current PE is 172.8
51 15.9% 163 50.9%
178-282
 46 14.4% 209 65.3%
282-345
 47 14.7% 256 80.0%
345-373
 32 10.0% 288 90.0%
373-1150
 32 10.0% 320 100.0%
Total 320 320
43.4%

Neutral zone

% Days traded below current PE

178.2
 

Current PE

373.7
 

Average PE

183.5
 

Median PE

577.5
 

Forward 1Y Price

58.8
 

Forward PE

4.7
 

Forward EPS

PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
126-138
 16 5.0% 16 5.0%
138-145
 16 5.0% 32 10.0%
145-161
 33 10.3% 65 20.3%
161-174
 48 15.0% 113 35.3%
174-184
Current PE is 178.2
51 15.9% 164 51.2%
184-302
 45 14.1% 209 65.3%
302-396
 47 14.7% 256 80.0%
396-428
 33 10.3% 289 90.3%
428-1861
 31 9.7% 320 100.0%
Total 320 320

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (PE ratio) represents the price an investor pays per rupee of a company's earnings.
    For example, if a company has a PE ratio of 25, investors are willing to pay INR 25 for each rupee of the company's current earnings. This indicates that investors value the stock at 25 times its current earnings, with an expectation of future earnings growth.
    The PE ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher PE ratio (investors pay more for each rupee of earnings). Conversely, negative sentiment lowers the PE ratio (investors pay less for each rupee of earnings).

  • What is the PE buy/sell zone?

    The PE buy/sell zone is calculated based on how many days a stock has traded at its current PE level.
    To do this, we compare the current PE to the stock’s historical PE performance, to find out how often (for how many days in the past) the stock has traded at its current PE value.
    If the stock has usually traded above its current PE level (it’s at a higher PE for the majority of trading days), then the stock is cheaper than usual and in the PE buy zone.
    If the stock has usually traded below its current PE level (it’s at a lower PE for the majority of trading days), then the stock is more expensive than usual and in the PE sell zone.

  • How is the PE buy sell zone useful?

    The PE buy sell zone tells you if a stock’s current PE level is unusually high or low, and if a stock doesn’t typically trade at that level. It helps investors identify stocks that are undervalued or overvalued in terms of their typical PE trading behavior.
    Investors should keep in mind that the buy zone/sell zone is not a foolproof buy or sell signal. For example, the PE of a stock may have fallen substantially due to adverse events or negative news. Or the PE may have risen sharply after the company has won new orders, made an acquisition, announced a buyback, or some other positive event. PE Buy/Sell Zone signals should be looked at in conjunction with other information.

  • Why are the number of days different for Standalone and Consolidated data?

    This can be because of any of the 2 following reasons:
    1. Days when PE is negative are not considered in the analysis. So if only 1 of the Standalone or Consolidated PE is negative and the other is not, then the days will be different
    2. Companies have reported Consolidated data for limited period.
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