HDFC BANK LTD Valuation

HDFCBANK · Financial Services · Current price ₹819.6

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DocStoX fair value
₹412
medium confidence
Current price
₹820
Upside
-49.8%
P/E ratio
16.6x
P/B ratio
2.1x
Verdict
Avoid
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Is HDFC BANK LTD undervalued?

DocStoX estimates the fair value of HDFC BANK LTD at ₹412 per share, versus the current market price of ₹820. That puts the stock about -49.8% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is medium.

How this fair value is calculated

This estimate blends 2 independent methods: Excess-return (book value) (₹384), Relative P/E (₹486). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹350 (bear) to ₹412 (base) to ₹486 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

HDFC BANK LTD trades at a P/E of 16.6x and a P/B of 2.1x, with a dividend yield of 2.2%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

More on HDFC BANK LTD

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.