HDFC Bank Limited (HDFCBANK.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

+169.2%

₹1,942.35

vs ₹721.50 price

Levered DCF

₹2,730.72

After debt service

Piotroski score

3 / 9

Weak

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	14.78×	19.64×	16.59×	18.08×	21.08×	25.2×	18.11×	28.14×
P/B	1.92×	1.76×	1.5×	3.08×	3.25×	3.8×	2.49×	3.8×
P/S	2.27×	3.21×	2.96×	4.52×	5.07×	5.37×	3.34×	5.16×
EV / EBITDA	13.17×	19.16×	19.97×	14.34×	16.56×	19.87×	15.75×	20.48×
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×	0.36×	0.42×	0.27×	0.28×	0.39×	0.36×	0.36×
Debt / equity	1×	0.97×	1.17×	1.11×	0.93×	0.85×	1.04×	1.15×
Interest coverage	0.55×	0.47×	0.46×	0.85×	0.89×	0.74×	0.59×	0.64×
Dividend yield	1.8%	1.2%	0.8%	1.0%	0.4%	0.0%	1.4%	0.7%
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	13.0%	8.8%	9.0%	17.0%	15.4%	15.1%	13.7%	13.5%
Return on invested capital	1.6%	3.4%	3.2%	7.7%	7.6%	7.5%	6.1%	5.8%
Return on assets	1.5%	1.4%	1.4%	1.9%	1.8%	1.8%	1.6%	1.7%
Free cash flow yield	14.6%	8.4%	9.3%	4.8%	6.8%	5.0%	3.2%	2.7%
Earnings yield	6.8%	5.0%	6.0%	5.5%	4.7%	4.0%	5.5%	3.6%
Enterprise value	₹14T	₹17.7T	₹15.1T	₹9.8T	₹8.9T	₹9T	₹6T	₹7.2T
Net debt / EBITDA	2.6×	4.58×	6.23×	1.28×	1.38×	1.76×	3.3×	2.89×
Cash conversion cycle (days)	0	-77	-90	-101	-89	-68	7	-56