HDFC Bank Limited (HDB) 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

+173.9%

$62.68

vs $22.88 price

Levered DCF

$90.59

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.37

Distress zone

Rating

B+

Overall 3 / 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	15.65×	20.5×	17.28×	22.09×	22.61×	33.03×	19.71×	32.36×
P/B	2.08×	1.89×	1.6×	3.51×	3.46×	4.87×	2.84×	4.43×
P/S	2.29×	3.46×	3.16×	5.15×	5.4×	6.87×	3.81×	6.01×
EV / EBITDA	13.14×	20.28×	20.91×	16.16×	17.55×	24.93×	16.15×	22.91×
Gross margin	57.2%	52.2%	52.7%	57.1%	55.6%	51.2%	47.8%	49.5%
Operating margin	20.6%	20.5%	20.0%	33.4%	32.4%	28.8%	25.9%	28.3%
Net margin	15.3%	16.1%	17.7%	25.0%	24.1%	21.3%	18.5%	18.3%
Current ratio	0×	0.34×	0.41×	0.27×	0.28×	0.39×	7.13×	4.1×
Debt / equity	1×	0.97×	1.17×	1.11×	0.93×	0.85×	0.78×	1.04×
Interest coverage	0.55×	0.47×	0.46×	0.85×	0.89×	0.74×	0.59×	0.64×
Dividend yield	1.8%	1.1%	0.8%	0.8%	0.4%	0.0%	1.2%	0.6%
Payout ratio	27.2%	23.5%	13.9%	17.4%	9.4%	0.1%	25.5%	18.6%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	13.9%	8.8%	9.0%	17.0%	15.4%	15.1%	13.7%	13.5%
Return on invested capital	1.7%	3.4%	3.2%	7.7%	7.4%	7.5%	3.2%	3.4%
Return on assets	1.7%	1.4%	1.4%	1.9%	1.8%	1.8%	1.6%	1.7%
Free cash flow yield	14.4%	7.8%	8.7%	4.2%	6.4%	8.6%	2.8%	2.3%
Earnings yield	6.7%	4.6%	5.6%	4.9%	4.5%	3.1%	4.8%	3.0%
Enterprise value	$14.7T	$18.7T	$15.8T	$11.1T	$9.4T	$11.3T	$6.1T	$8.1T
Net debt / EBITDA	2.43×	4.58×	6.23×	1.28×	1.38×	1.76×	1.96×	2.39×
Cash conversion cycle (days)	0	-65	-77	-101	-78	-68	-24	-93