HDFC Bank Valuation
| HDB Stock | USD 58.30 0.75 1.27% |
At this time, the firm appears to be undervalued. HDFC Bank Limited retains a regular Real Value of $69.26 per share. The prevalent price of the firm is $58.3. Our model calculates the value of HDFC Bank Limited from inspecting the firm fundamentals such as Return On Equity of 0.17, operating margin of 0.27 %, and Return On Asset of 0.02 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors encourage taking in undervalued assets and trading overvalued assets since, in the future, asset prices and their ongoing real values will come together. Key fundamental drivers impacting HDFC Bank's valuation include:
Price Book 4.1379 | Enterprise Value 5.6 T | Price Sales 0.0747 | Forward PE 16.9779 | Trailing PE 18.5692 |
Undervalued
Today
Please note that HDFC Bank's price fluctuation is very steady at this time. Calculation of the real value of HDFC Bank Limited is based on 3 months time horizon. Increasing HDFC Bank's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for HDFC Bank Limited is useful when determining the fair value of the HDFC stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of HDFC Bank. Since HDFC Bank is currently traded on the exchange, buyers and sellers on that exchange determine the market value of HDFC Stock. However, HDFC Bank's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 58.3 | Real 69.26 | Target 81.42 | Hype 58.34 |
The real value of HDFC Stock, also known as its intrinsic value, is the underlying worth of HDFC Bank Limited Company, which is reflected in its stock price. It is based on HDFC Bank's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of HDFC Bank's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence HDFC Bank's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of HDFC Bank Limited helps investors to forecast how HDFC stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of HDFC Bank more accurately as focusing exclusively on HDFC Bank's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use HDFC Bank's intrinsic value based on its ongoing forecasts of HDFC Bank's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against HDFC Bank's closest peers. When choosing an evaluation method for HDFC Bank Limited, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
HDFC Bank Investments |
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HDFC Valuation Trend
Knowing HDFC Bank's actual value is paramount for traders to make sound investment determinations. HDFC Bank's real value is not only important for the investor to make better decisions but also for a more accurate overall view of HDFC Bank's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both HDFC Bank's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
HDFC Market Cap
HDFC Bank Limited is one of the top stocks in market capitalization category among related companies. Market capitalization of Financials industry is currently estimated at about 167.69 Billion. HDFC Bank totals roughly 149.53 Billion in market capitalization claiming about 89% of equities under Financials industry.HDFC Bank Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining HDFC Bank's current stock value. Our valuation model uses many indicators to compare HDFC Bank value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across HDFC Bank competition to find correlations between indicators driving HDFC Bank's intrinsic value. More Info.HDFC Bank Limited is one of the top stocks in price to earning category among related companies. It is one of the top stocks in price to book category among related companies fabricating about 0.15 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for HDFC Bank Limited is roughly 6.59 . As of April 23, 2024, Price To Book Ratio is expected to decline to 2.97. Comparative valuation analysis is a catch-all model that can be used if you cannot value HDFC Bank by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for HDFC Bank's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the HDFC Bank's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates HDFC Bank's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in HDFC Bank and how it compares across the competition.
About HDFC Bank Valuation
The stock valuation mechanism determines the current worth of HDFC Bank Limited on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of HDFC Bank Limited. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of HDFC Bank Limited based exclusively on its fundamental and basic technical indicators. By analyzing HDFC Bank's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of HDFC Bank's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of HDFC Bank. We calculate exposure to HDFC Bank's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to HDFC Bank's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.4 T | 1.5 T | |
| Pretax Profit Margin | 0.63 | 0.54 | |
| Operating Profit Margin | 0.63 | 0.54 | |
| Net Profit Margin | 0.47 | 0.36 | |
| Gross Profit Margin | 0.00 | 0.00 |
HDFC Bank Quarterly Retained Earnings |
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8 Steps to conduct HDFC Bank's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates HDFC Bank's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct HDFC Bank's valuation analysis, follow these 8 steps:- Gather financial information: Obtain HDFC Bank's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine HDFC Bank's revenue streams: Identify HDFC Bank's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research HDFC Bank's industry and market trends, including the size of the market, growth rate, and competition.
- Establish HDFC Bank's growth potential: Evaluate HDFC Bank's management, business model, and growth potential.
- Determine HDFC Bank's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate HDFC Bank's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of HDFC Bank represents a small ownership stake in the entity. As a stockholder of HDFC, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
HDFC Bank Dividends Analysis For Valuation
Please note that HDFC Bank has scaled down on payment of dividends at this time. At present, HDFC Bank's Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 21.81, whereas Earning Assets are forecasted to decline to about 3.3 T.
There are various types of dividends HDFC Bank can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of HDFC shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from HDFC Bank Limited directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When HDFC pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of HDFC Bank by the value of the dividends paid out.
HDFC Bank Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as HDFC Bank does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 1.9 B | |
| Quarterly Earnings Growth Y O Y | 0.029 | |
| Forward Price Earnings | 16.9779 |
HDFC Bank Current Valuation Indicators
Valuation refers to the process of determining the present value of HDFC Bank Limited and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value HDFC we look at many different elements of the entity such as HDFC's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. HDFC Bank's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final HDFC Bank's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as HDFC Bank, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use HDFC Bank's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes HDFC Bank's worth.When determining whether HDFC Bank Limited offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of HDFC Bank's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Hdfc Bank Limited Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Hdfc Bank Limited Stock: Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in HDFC Bank Limited. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in unemployment. Note that the HDFC Bank Limited information on this page should be used as a complementary analysis to other HDFC Bank's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for HDFC Stock analysis
When running HDFC Bank's price analysis, check to measure HDFC Bank's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy HDFC Bank is operating at the current time. Most of HDFC Bank's value examination focuses on studying past and present price action to predict the probability of HDFC Bank's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move HDFC Bank's price. Additionally, you may evaluate how the addition of HDFC Bank to your portfolios can decrease your overall portfolio volatility.
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Is HDFC Bank's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of HDFC Bank. If investors know HDFC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about HDFC Bank listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.029 | Earnings Share 3.18 | Revenue Per Share 193.7952 | Quarterly Revenue Growth 1.132 | Return On Assets 0.02 |
The market value of HDFC Bank Limited is measured differently than its book value, which is the value of HDFC that is recorded on the company's balance sheet. Investors also form their own opinion of HDFC Bank's value that differs from its market value or its book value, called intrinsic value, which is HDFC Bank's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because HDFC Bank's market value can be influenced by many factors that don't directly affect HDFC Bank's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between HDFC Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if HDFC Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, HDFC Bank's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.