PNB Housing Finance Limited Fair Value
PNBHOUSING · Financial Services · Current price ₹1,167.7
Is PNB Housing Finance Limited undervalued?
We estimate the fair value of PNB Housing Finance Limited at ₹735 per share, against a market price of ₹1,179. That puts the share price about -37.7% above our estimate, at medium confidence. This is our view of what the business is worth, not a target price or a forecast of where the share price will go.
How this fair value is calculated
This estimate comes from 2 methods: Justified P/B (Gordon) (₹768), Residual income (excess return on book) (₹657). Each is weighted by how well its inputs held up for this company. The full working, including the assumptions and what data was missing, is set out below.
The range around this estimate
Our estimate for PNB Housing Finance Limited spans ₹657 to ₹808. A margin of safety means buying meaningfully below the estimate: the wider the range, the more room the assumptions leave for error.
How we got this fair value
Every number below is part of the same estimate for PNB Housing Finance 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 ₹657 – ₹808
Why this method for this business
As a housing finance company, PNBHOUSING is best valued using justified P/B and residual income models, which align with its capital-intensive and debt-dependent nature.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
12% sustainable ROE vs 10.6% cost of equity justifies ~1.2× book
Book value plus the present value of returns earned above the 10.6% cost of equity
- relative_pb was downweighted due to lack of peer comparables and potential overvaluation relative to book value
What was missing
- Lack of detailed peer comparisons for relative P/B
- Limited forward EBITDA estimates for more precise modeling
What drives it
11 inputs, grouped by how strong each claim is
- ROE (normalized)
- 11.6%
- Dividend payout
- 8.7%
- Book value / share
- 647.6 ₹
computed
ratios/derived
reported
- Cost of equity
- 10.6%
building-block
- Near-term growth g
- 10.6%
- High-growth years
- 10 yrs
- Terminal ROE
- 11.1%
- Terminal growth g
- 5%
computed
building-block
faded toward COE + moat
computed
- Moat
- None
- Excess-return horizon
- 3 yrs
computed
computed
- Justified P/B
- 1.19×
two-stage Gordon
Who computed this
A language model (qwen3:8b) selects the valuation method and the judgement inputs for PNB Housing Finance 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 PNB Housing Finance Limited
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.