Indian Overseas Bank (IOB.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

-128.3%

-₹8.32

vs ₹29.44 price

Levered DCF

-₹38.10

After debt service

Piotroski score

3 / 9

Weak

Altman Z-score

0.25

Distress zone

Rating

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	11.53×	21.42×	46.25×	19.52×	20.17×	31.37×	-1.36×	-6.65×
P/B	1.69×	2.22×	4.44×	1.71×	1.52×	1.54×	0.72×	1.52×
P/S	1.66×	2.12×	4.12×	1.8×	1.59×	1.17×	0.57×	1.18×
EV / EBITDA	13.09×	23.9×	42.29×	17.94×	0.23×	-0.96×	0.9×	-0.02×
Gross margin	38.9%	48.9%	52.1%	52.6%	51.9%	50.7%	40.3%	41.4%
Operating margin	17.2%	10.1%	9.0%	8.9%	7.9%	3.4%	-41.2%	-28.3%
Net margin	14.4%	10.1%	9.0%	8.9%	7.9%	3.4%	-42.1%	-17.7%
Current ratio	0.07×	0.13×	0.13×	0.13×	0.18×	0.16×	0.15×	0.17×
Debt / equity	1.4×	1.25×	0.85×	0.84×	0.14×	0.21×	0.32×	0.38×
Interest coverage	0.34×	0.2×	0.19×	0.19×	0.16×	0.07×	-0.69×	-0.48×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	14.6%	10.5%	9.7%	8.5%	7.6%	4.4%	-52.8%	-22.8%
Return on invested capital	5.2%	2.7%	2.9%	3.6%	4.5%	2.2%	-22.1%	-13.6%
Return on assets	1.1%	0.9%	0.8%	0.7%	0.6%	0.3%	-3.3%	-1.5%
Free cash flow yield	28.9%	-33.0%	-1.2%	-38.1%	16.0%	18.5%	-122.0%	-6.6%
Earnings yield	8.7%	4.7%	2.2%	5.0%	5.0%	2.9%	-73.5%	-15.0%
Enterprise value	₹888.8B	₹905.8B	₹1.3T	₹424.2B	₹4.3B	-₹9.7B	-₹72.4B	₹1.1B
Net debt / EBITDA	3.89×	5.03×	1.52×	-0.01×	-18×	-26.87×	2.34×	4.37×
Cash conversion cycle (days)	0	168	143	118	100	82	95	75