1. MARKETS
  2. SECTOR : GENERAL INDUSTRIALS
  3. INDUSTRY : HEAVY ELECTRICAL EQUIPMENT
  4. BHARAT HEAVY ELECTRICALS LTD.
Bharat Heavy Electricals Ltd. NSE: BHEL | BSE: 500103
211.50 -5.01 (-2.31%)
5.4M
NSE+BSE Volume

NSE 26 Aug, 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

98.5
Upside

Current PE versus 5Yr Average PE

-53.44 %
1 Year Forward : 5 Yr Average PE & Projected 1Yr Forward EPS*
Undervalued
Fair price

Based on 1Yr Forward EPS

582.1
Upside

5 Yr Average PE & 1Yr Forward EPS

175.23 %
Info: The Bharat Heavy Electricals Ltd.'s current PE is 254.12 ,while its 5 year PE average is 118.3. Its forward PE based on analyst estimates is 43.0
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.
Choose Stock, Parameter and Date Range
Furthest date for non subscribers is 28-08-2023
generated report

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

from 28 Aug, 2023 to 27 Aug, 2025

Standalone PE

Neutral zone

55.9% into PE buy sell zone

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

Out of 322 days, Bharat Heavy Electricals Ltd. traded 180 (55.9%) days below the current PE of on Standalone basis.

Consolidated PE

Neutral zone

55.6% into PE buy sell zone

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

Out of 322 days, Bharat Heavy Electricals Ltd. traded 179 (55.6%) 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
PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
118-130
19 5.9% 19 5.9%
130-133
13 4.0% 32 9.9%
133-140
39 12.1% 71 22.0%
140-154
42 13.0% 113 35.1%
154-169
49 15.2% 162 50.3%
169-329
Current PE is 254.1
47 14.6% 209 64.9%
329-613
48 14.9% 257 79.8%
613-903
32 9.9% 289 89.8%
903-1150
33 10.2% 322 100.0%
Total 322 322
PE range Days traded in range % Days traded in range Days traded within & below range % Days traded within & below range
126-138
17 5.3% 17 5.3%
138-143
17 5.3% 34 10.6%
143-152
31 9.6% 65 20.2%
152-163
47 14.6% 112 34.8%
163-176
50 15.5% 162 50.3%
176-377
Current PE is 272.2
48 14.9% 210 65.2%
377-991
47 14.6% 257 79.8%
991-1462
32 9.9% 289 89.8%
1462-1861
33 10.2% 322 100.0%
Total 322 322

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.