HDFC Bank Limited (HDFCBANK.NS)

DDM Valuation · Financial Services · Banks - Regional

Valuation as at 2026-08-04 · refreshed with the NIFTY 500 Most Undervalued screen

About HDFC Bank Limited

HDFC Bank Limited provides banking and financial products and services to individuals and businesses in India, Bahrain, Hong Kong, Singapore, and Dubai. The company operates through Treasury, Retail Banking, Wholesale Banking, Other Banking Business, Insurance Business, and Other segments. It offers savings, salary, current, rural, public provident fund, pension, and demat accounts; fixed and recurring deposits; and safe deposit lockers, as well as offshore accounts and deposits, and overdrafts against fixed deposits.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

HDFC Bank Limited HDFCBANK.NS

Financial Services · Banks - Regional

Price
₹738.95
Market Cap
₹11383.54B
Dividend Yield
1.7%
Beta
0.60
P/E (TTM)
16.1x
52-Week Range
₹726.65–₹1,020.50

HDFCBANK.NS's price & financial trends

Quarterly reporting periods — the most granular consistent series Yahoo provides for this market.

Data refreshed 2026-08-04

Share price · last 2 years

₹738.90 -10% vs first period
NIFTY 50 ₹818.45₹849.38₹1,000.75₹1,007.60₹771.70₹738.90 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted)

₹10.56 -8% vs first period
₹11.50₹12.26₹10.56Q4 '24Q1 '25Q2 '25

Return on equity

8.6% -49% vs first period
17.0%9.0%8.8%8.6%FY23FY24FY25FY26

Dividend per share

No dividend history available.

🏦 Bank/Insurer — valued with the Dividend Discount Model

DCF is not used for bank/insurer stocks: deposits or reserves are a raw material rather than funding, so there's no clean free cash flow. This valuation uses the Dividend Discount Model (DDM) instead.

P/B
1.88x
ROE
13.8%
Div Yield
1.7%

Intrinsic value estimate · 5-year forecast

BEAR
₹136.00
vs current ₹738.95
-81.6% ❌ Overvalued
BASE
₹170.96
vs current ₹738.95
-76.9% ❌ Overvalued
BULL
₹217.96
vs current ₹738.95
-70.5% ❌ Overvalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Risk-free rate
7.00% ● LIVE
Live 10-yr govt bond
Beta
0.60
Floored for non-US stocks
Equity risk premium
7.50%
Market-specific seed
Debt component
None
DDM discounts dividends at cost of equity only
Starting dividend (D0)
₹13.00
Annual, per share
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
Dividend growth3.0%6.0%9.0%
Terminal growth2.5%2.5%2.5%
Cost of equity12.50%11.50%10.50%

Cost of Equity (CAPM) = Risk-free rate + Beta × Equity Risk Premium = 7.00% + 0.60 × 7.50% = 11.50%

These numbers come from running HDFC Bank Limited's dividends through the mechanical DDM formula and assumptions above — not from any view on the news, management, or HDFCBANK.NS's competitive position. What is DDM?

Want to test your own dividend growth or cost-of-equity assumptions?Open the full interactive calculator, pre-filled with HDFCBANK.NS →

More NIFTY 500 Most Undervalued stocks

Not financial advice. DDM valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Refreshed on the same cycle as the NIFTY 500 Most Undervalued screen. Change any assumption yourself in the full interactive tool.

Frequently asked questions

Is HDFCBANK.NS undervalued?

The Base-case DDM estimates intrinsic value at ₹170.96 vs a current price of ₹738.95 — a -76.9% margin, so the Base case reads overvalued. This is a mechanical output, not advice.