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Banks · NSE: HDFCBANK

HDFC Bank Limited - Fair Value & Intrinsic Value Estimate

Intrynsic's multi-model valuation estimates HDFC Bank Limited's fair value at ₹590 per share (range ₹449–₹590) against a market price of ₹743 - a gap of -20.6% (updated 24 July 2026). This is an estimated fair value based on stated assumptions, not investment advice.

Low ₹449Above fair-value est.High ₹590

Market price

₹743

close of 24 Jul 2026

Est. fair value

₹590

₹449–₹590

Gap

-20.6%

price vs estimate

Trading ~21% above our estimated fair-value range. Assumptions and per-model workings are below.

What HDFC Bank Limited does

HDFC Bank is India's largest private-sector bank, lending to households and businesses and holding their deposits. After merging with parent HDFC Ltd it also carries a large home-loan book.

Banks · Banks

Health signals

GrowthRevenue +26.9%/yr (3y)Good

Over the last 3 years, revenue grew 26.9%/yr and profit grew 19.7%/yr.

ProfitabilityROE 13.6%Good

Every ₹100 of shareholder money earned ₹13.6 in profit last year, vs a sector median of 12.2%.

DebtNot applicableN/A

Borrowing is core to a lender's business model — judge it on profitability and consistency instead.

Valuation-4% vs estimateOkay

The market price is close to our estimated fair value (based on stated assumptions).

QualityROE steady within ±0.9ppGood

Returns on equity varied by about 0.9 percentage points over the last 5 years — steady.

The valuation, explained- models, weights & assumptions ▾

Intrynsic values HDFC Bank Limited with 3 independent models and blends them into one estimated fair-value range. Every number below is an estimate based on the stated assumptions - change the assumptions and the estimate changes.

ModelEstimated valuevs priceWeight
P/B + Excess ReturnBank Net Worth Method₹590-21%-
DDMDividend Discount Method₹225-70%-
Bank FCFE DCFBank Cash Flow Method₹449-40%-

Key assumptions

Risk-free rate
7.0%
Equity risk premium
6.5%
Beta
0.792
Cost of equity
12.2%
Terminal growth
5.0%
Tax rate
25%

Reverse DCF: today's market price implies the company must grow free cash flow about 26.1% a year for the next decade - versus 26.6% historical revenue growth.

Key financialsFY17–FY26

Full statements & analysis →
Revenue₹3,48,615 Cr
Net profit₹79,219 Cr
EPS₹49.39
Free cash flow₹1,07,143 Cr
ROE (latest)13.6%
Revenue growth (CAGR)18.9%
Profit growth (CAGR)20.0%

Peers

Sector overview →
ICICI Bank Limited₹10,37,383 CrP/E 19.1ROE 16.1%Fair-value estimate →
Karur Vysya Bank Limited₹32,805 CrP/E 13.1ROE 17.8%
IDBI Bank Limited₹90,880 CrP/E 9.9ROE 13.5%
Kotak Mahindra Bank Limited₹3,82,360 CrP/E 19.8ROE 10.7%Fair-value estimate →
Tamilnad Mercantile Bank Limited₹14,145 CrP/E 10.6ROE 13.2%
Axis Bank Limited₹3,81,877 CrP/E 14.5ROE 12.4%Fair-value estimate →
Ask AI about HDFC Bank LimitedChat with Intrynsic's research agent about results, risks and filings.Sign up free →Track it in your watchlistFair-value alerts, result-day briefs and portfolio analytics.Sign up free →See the full model workingsEvery assumption, per-model trace, reverse DCF and peer lens.Sign up free →

Frequently asked questions

What is HDFC Bank Limited's intrinsic value?

Intrynsic's multi-model valuation estimates HDFC Bank Limited's fair value at ₹590 per share (range ₹449–₹590), last updated 24 July 2026. This is an estimate based on stated assumptions, not investment advice.

Is HDFC Bank Limited overvalued or undervalued?

HDFC Bank Limited trades at ₹743 against Intrynsic's estimated fair value of ₹590 - the market price is 21% above the estimate, i.e. above our estimated fair-value range. Different assumptions produce different estimates; see the model breakdown above.

What is HDFC Bank Limited's P/E ratio?

HDFC Bank Limited trades at about 15.0 times its latest annual earnings per share.

What does HDFC Bank Limited do?

HDFC Bank is India's largest private-sector bank, lending to households and businesses and holding their deposits. After merging with parent HDFC Ltd it also carries a large home-loan book.

How is HDFC Bank Limited's fair value calculated?

Intrynsic runs 3 valuation models for HDFC Bank Limited (P/B + Excess Return, DDM, Bank FCFE DCF) and blends them into one estimated fair-value range. Every assumption - growth, discount rate, terminal value - is shown openly on this page.

Disclaimer: Intrynsic provides educational and informational analysis only. Fair-value figures are estimates based on stated assumptions - they are not investment advice, research recommendations, or an offer to transact in any security. Intrynsic is not a SEBI-registered investment adviser or research analyst. Markets carry risk; please do your own research or consult a registered adviser before making investment decisions. Prices shown may be delayed end-of-day values. Terms · Privacy

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