If people could see the future, the stock market would have been a different ball game, but we can’t. But history gives us the luxury to take a peek at past data. And by properly utilizing the data from the past, we can make excellent calculated guesses. So in this article, we will predict Hindustan Unilever’s (NSE: HINDUNILVR) share price target for 2023, 2024, and 2025, using the P/E and EPS history of Hindustan Unilever [HUL].
How Are We Going To Calculate Hindustan Unilever Share Price Target?
We will use the Forward P/E calculation methodology to forecast the future share price of Hindustan Unilever.
To understand it easily, Forward P/E is a method of predicting the stock price of a company by projecting the value of P/E into the future, using historical Price-to-Earning data.
Though predicting the future share price of a company using the Forward P/E method is a bit complicated, we will use a simpler version of Forward P/E.
First, we will calculate the average P/E of Hindustan Unilever for the last ten years.
Then, we will calculate the average Earning Per Share (EPS) Growth Rate of Hindustan Unilever for the last ten years.
After that, using the average EPS Growth Rate, we will forecast the EPS of Hindustan Unilever for the upcoming years.
The final task will be to multiply the forecasted EPS by the average P/E of the company to predict the share price target of Hindustan Unilever.
To keep this article compact and engaging, we have shown the exact calculation of the average P/E ratio and the average EPS Growth Rate of Hindustan Unilever here.
We used ten years of historical P/E and EPS data to incorporate multiple market cycles into our calculation.
According to our calculation, the average P/E ratio of Hindustan Unilever between 2011 and 2021 was 48.53. And the average EPS Growth Rate of the company in the same period was 11.77%.
Now, let’s start predicting the share price target of Hindustan Unilever.
Hindustan Unilever Share Price Forecast For 2023
EPS Forecast Of Hindustan Unilever For 2023
As of 31st March 2022, the EPS of Hindustan Unilever stood at Rs. 37.79/-.
And the average EPS Growth Rate of Hindustan Unilever is 11.77%.
Using the above two metrics, we can predict that the EPS of Hindustan Unilever by the end of March 2023 will be Rs. 42.23/-.
Here is the calculation
EPS of 2022 * Average EPS Growth Rate = How many Rupees the EPS is going to rise.
Rs. 37.79 * 11.77% = Rs. 4.44/-.
Forecasted EPS of 2023 = EPS of 2022 + Rising Amount
Rs. 37.79 + Rs. 4.44 = Rs. 42.23/-
Now, let us predict the Hindustan Unilever share price target for 2023.
Share Price Forecast Of Hindustan Unilever For 2023
To predict the share price of Hindustan Unilever for 2023, we need to multiply the company’s forecasted EPS by the average P/E ratio.
The forecasted EPS was Rs. 42.23/-, and the average P/E ratio of Hindustan Unilever for the last ten years is 48.53.
So,
The Hindustan Unilever share price target for 2023 is Rs. 2,049.42/-.
Or, we can round that up to Rs. 2,050.00/-.
But we can have a much more accurate share price forecast of Hindustan Unilever using the company’s average P/E ratio for the last five years, which we calculated here.
According to our calculation, the average P/E ratio of Hindustan Unilever for the last five years, starting from 2018, is 63.17.
So, a more accurate share price target of Hindustan Unilever will be Rs. 2,667.66/-. Or, it can be rounded up to Rs. 2,668.00/-.
Using the same methodology, now let us forecast the Hindustan Unilever share price target for 2024.
Hindustan Unilever Share Price Forecast For 2024
EPS Forecast Of Hindustan Unilever For 2024
Earlier, we predicted that the EPS of Hindustan Unilever for 2023 would be Rs. 42.23/-. And the average EPS Growth Rate of Hindustan Unilever for the last ten years is 11.77%.
So, if we increase Rs. 42.23/- by 11.77%, then –
We can predict that the EPS of Hindustan Unilever for 2024 will be Rs 47.20/-.
Now, let us predict the share price of Hindustan Unilever for 2024.
Hindustan Unilever Share Price Forecast For 2024
The forecasted EPS of Hindustan Unilever for 2024 is Rs. 47.20/-. And the average P/E ratio of Hindustan Unilever for the last ten years is 48.53.
So,
The Hindustan Unilever share price target for the year 2024 is Rs. 2,290.61/-.
We can predict the share price of Hindustan Unilever for 2024 far more accurately using the company’s average P/E ratio for the last five years, which stands at 63.17.
So, a more accurate Hindustan Unilever share price target for 2024 will be Rs. 2,981.62/-. Or, it can be rounded up to Rs. 2,982.00/-.
Now, let’s proceed toward predicting the share price of Hindustan Unilever for 2025.
Hindustan Unilever Share Price Forecast For 2025
EPS Prediction Of Hindustan Unilever For 2025
In the above section, we predicted that the EPS of Hindustan Unilever for the year 2024 would be Rs. 47.20/-.
To predict the EPS of Hindustan Unilever for 2025, we need to increase the previous year’s EPS by the average EPS Growth Rate of HUL. And the average EPS Growth Rate of Hindustan Unilever for the last ten years has been 11.77%.
So,
The EPS of Hindustan Unilever for 2025 will be Rs. 52.75/-.
Hindustan Unilever Share Price Forecast For 2025
To predict the share price of Hindustan Unilever for 2025, we need to multiply the company’s EPS for the year 2025, which we just calculated above, by the ten-year average P/E of the company.
The average P/E ratio of Hindustan Unilever for the last ten years is 48.53.
Now, the HUL share price prediction calculation would look like this –
EPS of HUL For 2025 * 10-year Average P/E Ratio = HUL share price target for 2025
Rs. 52.75/- * 48.53 = Rs. 2,559.95/-
So,
The target price of the Hindustan Unilever shares for the year 2025 is Rs. 2,559.95/-.
Or, we can round that up to Rs. 2,560.00/-.
If we want a more precise prediction, we can use the average P/E ratio of Hindustan Unilever for the last five years, which is 63.17.
So, a much more accurate Hindustan Unilever share price target will be Rs. 3,332.21/-.
Hindustan Unilever Share Price Target List
| Forecast Year | HUL EPS Prediction | HUL Share Price Prediction | More Accurate HUL Share Price Forecast |
|---|---|---|---|
| 2023 | Rs. 42.23/- | Rs. 2,049.42/- | Rs. 2,667.66/- |
| 2024 | Rs. 47.20/- | Rs. 2,290.61/- | Rs. 2,981.62/- |
| 2025 | Rs. 57.75/- | Rs. 2,559.95/- | Rs. 3,332.21/- |
That was it!
We hope that you liked this article about Hindustan Unilever stock price prediction and the calculation methodology we used to forecast the future share price of HUL.
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