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Bajaj Finance (BOM:500034) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Bajaj Finance Forward PE Ratio Related Terms
Bajaj Finance Forward PE Ratio Historical Data
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The historical data trend for Bajaj Finance's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bajaj Finance Forward PE Ratio Chart
Bajaj Finance Annual Data
Trend
2018-03
2019-03
2020-03
2021-03
2022-03
2023-03
2025-03
2026-03
Forward PE Ratio
29.85
37.04
17.95
40.32
44.05
25.97
26.42
20.82
Bajaj Finance Quarterly Data
2018-03
2018-06
2018-09
2018-12
2019-03
2019-06
2019-09
2019-12
2020-03
2020-06
2020-09
2020-12
2021-03
2021-06
2021-09
2021-12
2022-03
2022-06
2022-09
2022-12
2023-03
2023-06
2024-12
2025-03
2025-06
2025-09
2025-12
2026-03
2026-06
Forward PE Ratio
29.85
40.49
38.17
36.23
37.04
43.29
39.06
29.67
17.95
53.19
55.25
35.71
40.32
45.45
64.94
42.92
44.05
33.33
40.16
30.86
25.97
32.26
20.29
26.42
28.40
29.69
24.45
20.82
24.10
BOM:500034 vs V, MA, AXP: Forward PE Ratio Comparison
For the Credit Services subindustry, Bajaj Finance's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bajaj Finance Forward PE Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Bajaj Finance's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Bajaj Finance's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Bajaj Finance (BOM:500034) has a Forward PE Ratio of 26.68 as of Aug. 20, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Bajaj Finance and its competitors. According to the industry distribution chart, Bajaj Finance ranks #178 out of 188 companies in the Credit Services industry, placing it in the top 94.7%.
Is Bajaj Finance's Forward PE Ratio too high?
Bajaj Finance's current Forward PE Ratio is 26.68. The Credit Services industry median Forward PE Ratio is 10.50. Bajaj Finance's value of 26.68 is 154.2% above this industry median. Based on the distribution chart, Bajaj Finance ranks #178 out of 188 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Bajaj Finance has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Finance's Forward PE Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Bajaj Finance ranks #178 out of 188 companies for Forward PE Ratio. This places Bajaj Finance in the lower half of its industry. The industry median Forward PE Ratio is 10.50. Bajaj Finance's value of 26.68 is 154.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Credit Services company?
The median Forward PE Ratio among Credit Services companies is 10.50, based on 188 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bajaj Finance's current Forward PE Ratio of 26.68 is 154.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Bajaj Finance and its competitors. For the Credit Services industry, the median Forward PE Ratio is 10.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Finance's current Forward PE Ratio is 26.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Finance stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Finance (BOM:500034) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,150.04, compared to a current price of ₹1,078.60 — trading 6.2% below its estimated fair value. The current Forward PE Ratio is 26.68 and 154.2% above the Credit Services industry median of 10.50. Bajaj Finance's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Bajaj Finance (BOM:500034), the current Forward PE Ratio is 26.68 as of Aug. 20, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bajaj Finance (BOM:500034) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Finance stock appears to be undervalued.
The current stock price of ₹1,078.60 is trading 6.2% below its estimated GF Value™ of ₹1,150.04.
GuruFocus considers Bajaj Finance to be Fairly Valued.
Key valuation signals for BOM:500034:
Forward PE Ratio: 26.68
GF Value™: ₹1,150.04 vs. price of ₹1,078.60 (6.2% below fair value)
Industry Position: 154.2% above the Credit Services median (#178 of 188)
No single metric tells the full story. See the BOM:500034 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Finance Ltd is the holding company for various financial services businesses under the Bajaj Group, which operates in India. The company is an NBFC in India offering payments, partnerships, services, and lending solutions to customers. The company's model is focused on the acquisition of customers and offering multiple loans and services on a cross-sell basis to meet their financial service needs. The company provides discretionary spending across consumer electronics, furniture, and digital products in India. The company's strategies and structure are closely aligned with those of commercial banks in India. All of its revenue is generated from India.
76GF Score
Get the complete analysis for BOM:500034
Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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