1. MARKETS
  2. SECTOR : GENERAL INDUSTRIALS
  3. INDUSTRY : HEAVY ELECTRICAL EQUIPMENT
  4. BHARAT HEAVY ELECTRICALS LTD.
Bharat Heavy Electricals Ltd. NSE: BHEL | BSE: 500103
257.50 0.15 (0.06%)
3.0M
NSE+BSE Volume

NSE 15 Jul, 2025 3:31 PM (IST)

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

INSIGHT
Bharat Heavy Electricals Ltd. 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

179.4
Upside

Current PE versus 5Yr Average PE

-30.32 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Undervalued
Fair price

Based on 1Yr Forward EPS

684.6
Upside

5 Yr Average PE & 1Yr Forward EPS

165.86 %
Info: The Bharat Heavy Electricals Ltd.'s current PE is 167.94 ,while its 5 year PE average is 117.0. Its forward PE based on analyst estimates is 44.0
Note: The forward P/E 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.
Choose Stock, Parameter and Date Range
Furthest date for non subscribers is 16-07-2023
generated report

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

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from 16 Jul, 2023 to 15 Jul, 2025

Standalone P/E

Neutral zone

53.0% into P/E buy sell zone

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

Out of 321 days, Bharat Heavy Electricals Ltd. traded 170 (53.0%) days below the current P/E of on Standalone basis.

Consolidated P/E

Neutral zone

53.3% into P/E buy sell zone

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

Out of 321 days, Bharat Heavy Electricals Ltd. traded 171 (53.3%) days below the current P/E 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
P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
67-107
16 5.0% 16 5.0%
107-125
17 5.3% 33 10.3%
125-134
32 10.0% 65 20.2%
134-143
51 15.9% 116 36.1%
143-165
45 14.0% 161 50.2%
165-329
Current P/E is 167.9
47 14.6% 208 64.8%
329-613
48 15.0% 256 79.8%
613-903
32 10.0% 288 89.7%
903-1150
33 10.3% 321 100.0%
Total 321 321
P/E range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
72-119
16 5.0% 16 5.0%
119-133
18 5.6% 34 10.6%
133-144
33 10.3% 67 20.9%
144-156
46 14.3% 113 35.2%
156-173
52 16.2% 165 51.4%
173-377
Current P/E is 174.8
44 13.7% 209 65.1%
377-991
47 14.6% 256 79.8%
991-1462
32 10.0% 288 89.7%
1462-1861
33 10.3% 321 100.0%
Total 321 321

FAQ

  • What is the PE ratio?

    In its simplest definition, the price-to-earnings ratio (P/E ratio) represents the price an investor pays per rupee of a company's earnings.
    For example, if a company has a P/E 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 P/E ratio fluctuates based on investor sentiment towards a company. Positive sentiment drives the stock price higher, resulting in a higher P/E ratio (investors pay more for each rupee of earnings). Conversely, negative sentiment lowers the P/E 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.