Sector landing page

Banking valuations

Banks use a P/B + Residual Income engine instead of DCF (FCF is not meaningful for a leveraged balance-sheet business). Private banks and PSU banks share the engine but sit in separate canonical sectors with different verdict thresholds. See each bank's analysis page for the residual-income disclosure and the implied long-run ROE.

Tickers

Median MoS

19.1%

Median score

Median ROE

12.1%

Verdict distribution

Undervalued3Fairly valued7Overvalued2

Cohort constituents

	Name			FV	Price
IDFCFIRSTB	IDFC First Bank Limited	67	-13.1	64.02	73.69	Fairly valued
ICICIBANK	ICICI Bank	65	20.5	1536.50	1275.00	Fairly valued
BANKBARODA	Bank of Baroda	65	17.7	322.14	273.75	Fairly valued
PNB	Punjab National Bank	65	20.8	132.48	109.65	Fairly valued
FEDERALBNK	The Federal Bank Limited	64	-3.9	300.86	312.95	Fairly valued
CANBK	Canara Bank	63	28.4	176.60	137.51	Fairly valued
KOTAKBANK	Kotak Mahindra Bank	50	44.8	552.52	381.70	Undervalued
AUBANK	AU Small Finance Bank Limited	50	-32.2	663.04	978.50	Overvalued
SBIN	State Bank of India	43	-21.3	789.31	1002.70	Fairly valued
HDFCBANK	HDFC Bank	40	52.9	1128.82	738.35	Undervalued
AXISBANK	Axis Bank	40	63.2	2109.16	1292.40	Undervalued
INDUSINDBK	IndusInd Bank Limited	12	-58.5	382.67	922.80	Overvalued