HDB Valuation

HDFC Bank Ltd

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73.990

-1.43(-1.896%)1D

Overview
Forecast
Valuation
Earnings

HDB Relative Valuation

HDB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HDB is overvalued; if below, it's undervalued.

Historical Valuation

HDFC Bank Ltd (HDB) is now in the Fair zone, suggesting that its current forward PE ratio of 18.58 is considered Fairly compared with the five-year average of 18.87. The fair price of HDFC Bank Ltd (HDB) is between 59.53 to 80.03 according to relative valuation methord.

Relative Value

Fair Zone

59.53-80.03

Current Price：75.42

Fair

18.33

Trailing

Forward

0.00

EV/EBITDA

HDFC Bank Ltd. (HDB) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

NaN

EV/EBIT

HDFC Bank Ltd. (HDB) has a current EV/EBIT of NaN. The 5-year average EV/EBIT is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBIT of NaN falls within the range.

4.90

HDFC Bank Ltd. (HDB) has a current PS of 4.90. The 5-year average PS is 6.31. The thresholds are as follows: Strongly Undervalued below 2.95, Undervalued between 2.95 and 4.63, Fairly Valued between 7.99 and 4.63, Overvalued between 7.99 and 9.68, and Strongly Overvalued above 9.68. The current Forward PS of 4.90 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

HDFC Bank Ltd. (HDB) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

0.00

P/FCF

HDFC Bank Ltd. (HDB) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

HDFC Bank Ltd (HDB) has a current Price-to-Book (P/B) ratio of 2.81. Compared to its 3-year average P/B ratio of 2.92 , the current P/B ratio is approximately -3.74% higher. Relative to its 5-year average P/B ratio of 3.19, the current P/B ratio is about -11.96% higher. HDFC Bank Ltd (HDB) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -11.30%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of -11.79% , the current FCF yield is about -100.00% lower.

2.77

P/B

Median3y

2.92

Median5y

3.19

0.00

FCF Yield

Median3y

-11.30

Median5y

-11.79

Competitors Valuation Multiple

The average P/S ratio for HDB's competitors is 4.06, providing a benchmark for relative valuation. HDFC Bank Ltd Corp (HDB) exhibits a P/S ratio of 4.90, which is 20.70% above the industry average. Given its robust revenue growth of 4.60%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Grupo Aval Acciones y Valores SA

Sumitomo Mitsui Financial Group Inc

Mizuho Financial Group Inc

5.91

82.23B

WF.N

Woori Financial Group Inc

1.63

0.05%

40.69B

Performance Decomposition

Market capitalization of HDB increased by 21.08% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 17.27 to 21.38.

The secondary factor is the Revenue Growth, contributed 4.60%to the performance.

Overall, the performance of HDB in the past 1 year is driven by P/E Change. Which is more unsustainable.

4.60%

4.43B → 4.64B

Revenue Growth

-7.33%

46.50 → 43.09

Margin Expansion

23.81%

17.27 → 21.38

P/E Change

21.08%