Indian Overseas Bank Intrinsic Value
IOB Valuation Methods Summary
| Method | Type | Intrinsic Value | Range | Upside/Downside | Details |
|---|---|---|---|---|---|
| P/E Based Valuation | earnings | ₹31.20 | ₹24.96 - ₹37.44 | -15.2% | EPS: ₹2.60, Sector P/E: 12x |
| Book Value Method | asset | ₹13.39 | ₹12.05 - ₹14.73 | -63.6% | Book Value/Share: ₹16.74, P/B: 0.8x |
| Revenue Multiple Method | revenue | ₹19.14 | ₹17.23 - ₹21.05 | -48.0% | Revenue/Share: ₹19.14, P/S: 1.0x |
| EBITDA Multiple Method | earnings | ₹14.72 | ₹13.25 - ₹16.19 | -60.0% | EBITDA: ₹6916.00Cr, EV/EBITDA: 5x |
| Simple DCF (5Y) | dcf | ₹14.72 | ₹11.78 - ₹17.66 | -60.0% | CF Growth: 5.0%, Discount: 15% |
| PEG Ratio Method | growth | ₹16.64 | ₹14.98 - ₹18.30 | -54.8% | EPS Growth: 8.0%, Fair P/E: 6.4x |
| Growth Adjusted P/E | growth | ₹21.42 | ₹19.28 - ₹23.56 | -41.8% | Revenue Growth: 6.0%, Adj P/E: 8.2x |
| ROE Based Valuation | profitability | ₹36.61 | ₹32.95 - ₹40.27 | -0.5% | ROE: 15.6%, P/E Multiple: 14x |
| Graham Defensive Method | conservative | ₹31.29 | ₹28.16 - ₹34.42 | -15.0% | EPS: ₹2.60, BVPS: ₹16.74 |
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Valuation Comparison Chart
IOB Intrinsic Value Analysis
What is the intrinsic value of IOB?
Based on our comprehensive analysis using 9 different valuation methods, the estimated intrinsic value of Indian Overseas Bank (IOB) is ₹19.14 (median value). With the current market price of ₹36.80, this represents a -48.0% variance from our estimated fair value.
The valuation range spans from ₹13.39 to ₹36.61, indicating ₹13.39 - ₹36.61.
Is IOB undervalued or overvalued?
Based on our multi-method analysis, Indian Overseas Bank (IOB) appears to be trading above calculated value by approximately 48.0%.
Financial Health Analysis
| Financial Metric | Current Value | Industry Benchmark | Assessment | Impact on Valuation |
|---|---|---|---|---|
| Current Ratio | 0.09 | Industry Standard: 2.0+ | Below 1.5 | Measures short-term liquidity capacity |
| Debt to Equity Ratio | 12.25 | Industry Standard: <0.5 | Above 1.0 | Indicates financial leverage level |
| Return on Equity | 15.6% | Industry Standard: 15%+ | Above 15% | Measures shareholder return efficiency |
| Operating Margin | 66.0% | 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 |
Related Pages for Indian Overseas Bank
Additional stock information and data for IOB
Cash Flow Quality Analysis
| Period | Operating Cash Flow | Free Cash Flow | Cash Flow Quality | Sustainability Score |
|---|---|---|---|---|
| March 2025 | ₹2,840 Cr | ₹2,551 Cr | Positive Free Cash Flow | 8/10 |
| March 2024 | ₹-1,119 Cr | ₹-1,299 Cr | Negative Cash Flow | 3/10 |
| March 2023 | ₹-13,655 Cr | ₹-13,935 Cr | Negative Cash Flow | 3/10 |
| March 2022 | ₹5,539 Cr | ₹5,515 Cr | Positive Free Cash Flow | 8/10 |
| March 2021 | ₹4,949 Cr | ₹4,926 Cr | Positive Free Cash Flow | 8/10 |