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 19.15 is considered Fairly compared with the five-year average of 18.89. The fair price of HDFC Bank Ltd (HDB) is between 26.68 to 35.81 according to relative valuation methord.
Relative Value
Fair Zone
26.68-35.81
Current Price：33.39
Fair
19.15
PE
1Y
3Y
5Y
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.
4.87
PS
HDFC Bank Ltd. (HDB) has a current PS of 4.87. The 5-year average PS is 6.12. The thresholds are as follows: Strongly Undervalued below 2.75, Undervalued between 2.75 and 4.43, Fairly Valued between 7.80 and 4.43, Overvalued between 7.80 and 9.49, and Strongly Overvalued above 9.49. The current Forward PS of 4.87 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 2.83. Compared to its 3-year average P/B ratio of 3.59 , the current P/B ratio is approximately -21.31% higher. Relative to its 5-year average P/B ratio of 3.41, the current P/B ratio is about -16.98% higher. HDFC Bank Ltd (HDB) has a Forward Free Cash Flow (FCF) yield of approximately -21.03%. Compared to its 3-year average FCF yield of -10.82%, the current FCF yield is approximately 94.44% lower. Relative to its 5-year average FCF yield of -11.44% , the current FCF yield is about 83.80% lower.
2.83
P/B
Median3y
3.59
Median5y
3.41
-21.03
FCF Yield
Median3y
-10.82
Median5y
-11.44
Competitors Valuation Multiple
The average P/S ratio for HDB's competitors is 4.52, providing a benchmark for relative valuation. HDFC Bank Ltd Corp (HDB) exhibits a P/S ratio of 4.87, which is 7.71% above the industry average. Given its robust revenue growth of 2.77%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of HDB increased by 9.50% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.35 to 21.30.
The secondary factor is the Revenue Growth, contributed 2.77%to the performance.
Overall, the performance of HDB in the past 1 year is driven by P/E Change. Which is more unsustainable.
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Frequently Asked Questions
Is HDFC Bank Ltd (HDB) currently overvalued or undervalued?
HDFC Bank Ltd (HDB) is now in the Fair zone, suggesting that its current forward PE ratio of 19.15 is considered Fairly compared with the five-year average of 18.89. The fair price of HDFC Bank Ltd (HDB) is between 26.68 to 35.81 according to relative valuation methord.
What is HDFC Bank Ltd (HDB) fair value?
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. The fair price of HDFC Bank Ltd (HDB) is between 26.68 to 35.81 according to relative valuation methord.
How does HDB's valuation metrics compare to the industry average?
The average P/S ratio for HDB's competitors is 4.52, providing a benchmark for relative valuation. HDFC Bank Ltd Corp (HDB) exhibits a P/S ratio of 4.87, which is 7.71% above the industry average. Given its robust revenue growth of 2.77%, this premium appears unsustainable.
What is the current P/B ratio for HDFC Bank Ltd (HDB) as of Jan 08 2026?
As of Jan 08 2026, HDFC Bank Ltd (HDB) has a P/B ratio of 2.83. This indicates that the market values HDB at 2.83 times its book value.
What is the current FCF Yield for HDFC Bank Ltd (HDB) as of Jan 08 2026?
As of Jan 08 2026, HDFC Bank Ltd (HDB) has a FCF Yield of -21.03%. This means that for every dollar of HDFC Bank Ltd’s market capitalization, the company generates -21.03 cents in free cash flow.
What is the current Forward P/E ratio for HDFC Bank Ltd (HDB) as of Jan 08 2026?
As of Jan 08 2026, HDFC Bank Ltd (HDB) has a Forward P/E ratio of 19.15. This means the market is willing to pay $19.15 for every dollar of HDFC Bank Ltd’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for HDFC Bank Ltd (HDB) as of Jan 08 2026?
As of Jan 08 2026, HDFC Bank Ltd (HDB) has a Forward P/S ratio of 4.87. This means the market is valuing HDB at $4.87 for every dollar of expected revenue over the next 12 months.