FEDERAL BANK LTD DCF Valuation

FEDERALBNK · Financial Services · Current price ₹349

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DocStoX fair value
₹172
medium confidence
Intrinsic-value estimate
₹160
12% ROE fading to 13% over ~3 yrs, on ₹162 book
Current price
₹349
Economic moat
None
High uncertainty
5Y profit growth
+21.7%
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FEDERAL BANK LTD intrinsic-value estimate

Our intrinsic-value model estimates FEDERAL BANK LTD is worth ₹160 per share, based on 12% ROE fading to 13% over ~3 yrs, on ₹162 book. Rather than a raw DCF — which is highly sensitive to fragile cash-flow forecasts — we use a residual-income (excess-return) model: a company is worth its book value plus the present value of the returns it earns ABOVE its cost of equity. A none economic moat sets how long that edge is assumed to last.

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DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.