Kotak Mahindra Bank Limited DCF Valuation
KOTAKBANK · Financial Services · Current price ₹447.4
Kotak Mahindra Bank Limited cash-flow valuation
Our residual income (excess return on book) values Kotak Mahindra Bank Limited at ₹310 per share. Book value plus the present value of returns earned above the 10.6% cost of equity. It carries 30% of the weight in our published estimate of ₹331. A discounted cash flow is only as good as the cash-flow path it assumes, so the assumptions behind it are listed in full below.
Try your own assumptions
Prefer to build the discounted cash flow yourself? The DCF calculator below opens pre-filled with Kotak Mahindra Bank Limited's reported free cash flow, net debt and share count, so you can set your own growth and discount rate.
How we got this fair value
Every number below is part of the same estimate for Kotak Mahindra Bank Limited. Nothing here is a target price or a forecast of where the share price will go.
Workable, with real gaps. Weigh it alongside your own view rather than on its own.
Estimate range ₹298 – ₹364
Why this method for this business
The justified P/B and residual income models are most appropriate for a private sector bank like Kotak Mahindra Bank, as they focus on sustainable ROE and book value, which are critical for valuing a financial institution.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
14% sustainable ROE vs 10.6% cost of equity justifies ~1.9× book
Book value plus the present value of returns earned above the 10.6% cost of equity
- relative_pb was excluded as it is less relevant for a bank with a strong book value and ROE-driven valuation
What was missing
- Lack of detailed credit risk data
- Limited forward EBITDA estimates
- No peer comparison for P/B ratios
What drives it
11 inputs, grouped by how strong each claim is
- ROE (normalized)
- 14.2%
- Dividend payout
- 2.5%
- Book value / share
- 182 ₹
computed
ratios/derived
reported
- Cost of equity
- 10.6%
building-block
- Near-term growth g
- 13.9%
- High-growth years
- 10 yrs
- Terminal ROE
- 12.6%
- Terminal growth g
- 5%
computed
building-block
faded toward COE + moat
computed
- Moat
- Narrow
- Excess-return horizon
- 10 yrs
computed
computed
- Justified P/B
- 1.87×
two-stage Gordon
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for Kotak Mahindra Bank Limited: which models suit the business, the moat, the growth and margin assumptions. It does not produce the number. The fair value itself is computed in Python by a deterministic engine (version 2026.08.1) from those inputs, so the same inputs always give the same result and every figure above can be traced to a source.
Estimated 14 Sept 2026. Re-run as new financials and news arrive.
How we value stocks
We estimate what a business is worth from its own economics: cash flows, returns on capital, and a multiple justified by its quality, rather than from where the share price has been. A fair value estimate is a view, not a verdict, and it is only as good as the inputs listed above.
Read the full fair-value methodologyMore on Kotak Mahindra Bank Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.