STATE BANK OF INDIA DCF Valuation
SBIN · Financial Services · Current price ₹962.6
STATE BANK OF INDIA cash-flow valuation
Our residual income (excess return on book) values STATE BANK OF INDIA at ₹737 per share. Book value plus the present value of returns earned above the 10.6% cost of equity. It carries 60% of the weight in our published estimate of ₹849. 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
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How we got this fair value
Every number below is part of the same estimate for STATE BANK OF INDIA. 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 ₹737 – ₹1,253
Why this method for this business
The residual income model is most appropriate for a bank like SBIN, as it captures the value of its book equity and excess returns over the cost of equity. The justified P/B model complements this by incorporating the sustainable ROE and cost of equity, which are critical for valuing a large, stable bank.
The models behind the number
Each method is weighted by how well its inputs held up for this company.
17% 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 due to the lack of a clear peer benchmark and the potential for misleading relative valuations in a sector with high variability in P/B ratios.
What was missing
- Lack of detailed peer P/B data
- Limited forward EBITDA estimates
- Uncertainty around future interest rate environment
What drives it
11 inputs, grouped by how strong each claim is
- ROE (normalized)
- 17.4%
- Book value / share
- 674 ₹
- Dividend payout
- 16.1%
computed
reported
ratios/derived
- Cost of equity
- 10.6%
building-block
- Near-term growth g
- 14.6%
- 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
- 1.86×
two-stage Gordon
Who computed this
A language model (glm-4.5-air) selects the valuation method and the judgement inputs for STATE BANK OF INDIA: 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 STATE BANK OF INDIA
DocStoX estimates are computed from reported financials, for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.