The Federal Bank Limited (FEDERALBNK.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-68.3%

₹105.49

vs ₹332.95 price

Levered DCF

-₹451.41

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.33

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	14.68×	11.33×	9.09×	8.81×	10.23×	9.09×	5.17×	14.75×
P/B	1.59×	1.38×	1.17×	1.26×	1.05×	0.92×	0.55×	1.44×
P/S	1.86×	1.49×	1.32×	1.38×	1.22×	0.93×	0.53×	1.52×
EV / EBITDA	11.36×	6.78×	4.82×	8.09×	2.68×	-0.49×	2.42×	7.83×
Gross margin	42.4%	44.7%	45.6%	50.7%	51.8%	47.9%	43.5%	42.9%
Operating margin	17.1%	17.6%	19.9%	21.0%	16.0%	13.6%	13.4%	15.3%
Net margin	12.7%	13.0%	14.6%	15.6%	11.9%	10.3%	10.3%	10.3%
Current ratio	0×	0.14×	0.12×	0.11×	0.19×	0.21×	25.62×	13.74×
Debt / equity	0.83×	0.96×	0.75×	1.17×	1.05×	0.77×	0.72×	0.64×
Interest coverage	0.33×	0.32×	0.37×	0.43×	0.33×	0.26×	0.24×	0.27×
Dividend yield	0.5%	0.6%	0.7%	1.4%	0.7%	0.0%	4.1%	1.2%
Payout ratio	6.8%	7.1%	6.1%	12.0%	7.1%	0.0%	21.2%	18.1%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	10.9%	12.0%	12.9%	14.3%	10.2%	10.1%	10.7%	9.8%
Return on invested capital	1.1%	5.6%	6.4%	-5.1%	4.5%	5.1%	19.1%	28.5%
Return on assets	1.1%	1.2%	1.2%	1.2%	0.9%	0.8%	0.9%	0.8%
Free cash flow yield	12.9%	-48.2%	-94.6%	0.0%	-40.0%	73.1%	43.8%	39.8%
Earnings yield	6.8%	8.7%	11.0%	11.3%	9.8%	11.0%	19.4%	6.8%
Enterprise value	₹700.9B	₹400.3B	₹266.8B	₹359.6B	₹74.6B	-₹11.5B	₹52.9B	₹163.1B
Net debt / EBITDA	1.02×	-1.29×	-1.55×	1.81×	-4.56×	-7×	-1.32×	-1.5×
Cash conversion cycle (days)	0	0	-18	82	0	128	-5,815	-899