Federal Bank Intrinsic Value

FEDERALBNK • Banks
Current Stock Price
₹258.55
Primary Intrinsic Value
₹193.92
Market Cap
₹126.9K Cr
+100.0% Upside
Median Value
₹517.10
Value Range
₹103 - ₹646
Assessment
Trading Below Calculated Value
Safety Margin
50.0%

FEDERALBNK Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
P/E Based Valuation earnings ₹193.92 ₹155.14 - ₹232.70 -25.0% EPS: ₹16.16, Sector P/E: 12x
Book Value Method asset ₹577.65 ₹519.88 - ₹635.42 +123.4% Book Value/Share: ₹722.06, P/B: 0.8x
Revenue Multiple Method revenue ₹517.10 ₹465.39 - ₹568.81 +100.0% Revenue/Share: ₹677.96, P/S: 1.0x
Simple DCF (5Y) dcf ₹646.38 ₹517.10 - ₹775.66 +150.0% CF Growth: 5.0%, Discount: 15%
PEG Ratio Method growth ₹103.42 ₹93.08 - ₹113.76 -60.0% EPS Growth: 8.0%, Fair P/E: 6.4x
Growth Adjusted P/E growth ₹133.16 ₹119.84 - ₹146.48 -48.5% Revenue Growth: 6.0%, Adj P/E: 8.2x
ROE Based Valuation profitability ₹517.10 ₹465.39 - ₹568.81 +100.0% ROE: 11.5%, P/E Multiple: 12x
Graham Defensive Method conservative ₹512.39 ₹461.15 - ₹563.63 +98.2% EPS: ₹16.16, BVPS: ₹722.06
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check FEDERALBNK share price latest .

Valuation Comparison Chart

FEDERALBNK Intrinsic Value Analysis

What is the intrinsic value of FEDERALBNK?

Based on our comprehensive analysis using 8 different valuation methods, the estimated intrinsic value of Federal Bank (FEDERALBNK) is ₹517.10 (median value). With the current market price of ₹258.55, this represents a +100.0% variance from our estimated fair value.

The valuation range spans from ₹103.42 to ₹646.38, indicating ₹103.42 - ₹646.38.

Is FEDERALBNK undervalued or overvalued?

Based on our multi-method analysis, Federal Bank (FEDERALBNK) appears to be trading below calculated value by approximately 100.0%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 0.14 Industry Standard: 2.0+ Below 1.5 Measures short-term liquidity capacity
Debt to Equity Ratio 10.16 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity 11.5% Industry Standard: 15%+ Above 10% Measures shareholder return efficiency
Operating Margin 65.0% Industry Standard: 20%+ Above 20% Indicates operational efficiency level
Asset Turnover Ratio 0.09x Industry Standard: 1.0x+ Below 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹8,801 Cr ₹6,902 Cr Positive Free Cash Flow 8/10
March 2024 ₹6,431 Cr ₹1,975 Cr Positive Free Cash Flow 7/10
March 2023 ₹489 Cr ₹-4,441 Cr Positive Operating Cash Flow 6/10
March 2022 ₹-7,774 Cr ₹-7,774 Cr Negative Cash Flow 3/10
March 2021 ₹11,179 Cr ₹9,223 Cr Positive Free Cash Flow 8/10