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Canara Bank (CANBK) Fair Value & Analysis

Financial Services · IN · Market cap ₹1.1T

CB Canara Bank CANBK · NSE
Price₹131.70
Fair Value₹251.80
Upside+91.2%
Quality40/100
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Expensive Growth
Highly profitable · 37.0% net margin
Moderate debt · negative free cash flow
3.34% dividend yield
Ranks above peers (8/12)
Moderate moat 45/100
Evidence: High Range ₹188.85 – ₹314.75 Share as image

Fair value as of: Jul 16, 2026

From 17 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from ₹257.90 to ₹251.80 (−2.4%) since Jun 26, 2026. Share price +5.3% over the past month.

Below-average quality, screening 91% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (40/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (₹188.85). The market is more pessimistic than our downside scenario.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

₹153.85 ₹21.68 Fair Value ₹251.80 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ₹21.68 – ₹153.85 · fair‑value band ₹188.85 – ₹314.75 · the ₹131.70 price screens below the ₹251.80 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Canara Bank (CANBK) currently trades at ₹131.70, while our model-based Fair Value estimate is ₹251.80, implying the stock looks roughly 91.2% undervalued today. We read business quality at 40/100 (below-average quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Canara Bank generated revenue of ₹483B at a net margin of 37.0%. Revenue declined 46.7% year over year. It earns a return on equity of 15.9%. The balance sheet holds a net cash position of ₹510B. Fundamentals as of Jul 16, 2026

Our scenario range runs from ₹188.85 (bear case) to ₹314.75 (bull case); at ₹131.70, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 27% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 91%, CANBK screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income ₹150.12 ₹202.32 ₹772.56 76
ROIC Compounder ₹346.65 ₹385.98 ₹421.57 72
Gordon GGM ₹38.48 ₹84.00 ₹141.33 70
All 17 models by family
DCF Models
Owner Earnings ₹424.58 ₹690.82 ₹1,185 31
Earnings-Based
Graham-Dodd ₹147.73 ₹717.13 ₹987.87 54
Lynch FV ₹192.07 ₹274.39 ₹356.70 50
PEG = 1.0 ₹192.07 ₹274.39 ₹356.70 46
EPV ₹345.93 ₹384.28 ₹418.37 59
Dividend Discount
Gordon GGM ₹38.48 ₹84.00 ₹141.33 70
DDM Multi-Stage ₹38.48 ₹68.81 ₹87.54 61
Multiples
P/E Multiple ₹325.87 ₹434.50 ₹543.12 63
P/S Multiple ₹276.99 ₹369.32 ₹461.65 58
P/B Multiple ₹276.99 ₹369.32 ₹461.65 55
EV/EBIT ₹507.27 ₹633.49 ₹759.71 53
EV/EBITDA ₹412.03 ₹506.50 ₹600.97 54
EV/Revenue ₹383.86 ₹493.25 ₹602.64 43
Asset-Based
NCAV (Graham) ₹64.88 ₹86.94 ₹129.76 50
Economic Profit
Residual Income ₹150.12 ₹202.32 ₹772.56 76
ROIC Compounder ₹346.65 ₹385.98 ₹421.57 72
Growth Earnings
Growth-Adj P/E ₹290.68 ₹415.26 ₹539.84 68

Widest divergence: DCF Models (₹690.82) versus Dividend Discount (₹68.81). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) ₹483B
Revenue growth (YoY) -46.7%
Net margin 37.0%
Return on equity 15.9%
Free cash flow −₹185B FY2026
P/E ratio 6.2
More key figures
Operating margin -32.2%
EPS (TTM) ₹21.73
Dividend yield 3.2%
EPS growth (YoY) -9.8%
Net cash ₹510B FY2026

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 30 · Market factors (momentum, volatility) 61

Profitability 30
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 36
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 46
Price trend over the last 3–12 months (market factor)
52W Momentum 60
Distance to the 52-week high (market factor)
Net Issuance 40
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Canara Bank provides various banking products and services in India and internationally. The company offers deposits and accounts, such as savings accounts, current accounts, recurring deposits, and term deposits; unclaimed deposits; loan products, including home, vehicle, education, personal, mortgage, gold, MSME, agri, and solar loans; life, general, and …

Full company description

Canara Bank provides various banking products and services in India and internationally. The company offers deposits and accounts, such as savings accounts, current accounts, recurring deposits, and term deposits; unclaimed deposits; loan products, including home, vehicle, education, personal, mortgage, gold, MSME, agri, and solar loans; life, general, and health insurance products; corporate loans comprising working capital, infrastructure, and export finance products, as well as term loans; depository services, merchant banking, and online trading services; and mutual funds. The company also provides digital lending portal; mobile and internet banking; credit, debit, and prepaid cards; UPI and fastag; missed call banking; online account opening services; and payment solutions; NRI banking accounts; remittance facilities; attorneyship service; and nomination facility. In addition, it offers supply chain finance management; syndication services; IPO monitoring services; locker services; doorstep banking services; and consultancy services, which includes estate and wills, private and charitable religious trustee, debenture and security trusteeship, and attorney services. Further, the company offers government business products. Canara Bank was incorporated in 1906 and is headquartered in Bengaluru, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Canara Bank reported revenue of ₹1.5T in FY2026 versus ₹928B in FY2022, a compound +13.3%/yr. Reported net income was ₹197B in FY2026, compounding +33.9%/yr from FY2022.

Growth Quality 54/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹1.5T
Latest YoY
−0.4%
Avg. growth/yr (3Y)
+12.2%
Avg. growth/yr (5Y)
+10.4%
Avg. growth/yr (21Y)
+14.2%
Revenue +13.3%/yr
FY22 ₹928B
FY23 ₹1.1T
FY24 ₹1.4T
FY25 ₹1.5T
FY26 ₹1.5T
Net income +33.9%/yr
FY22 ₹61.2B
FY23 ₹113B
FY24 ₹153B
FY25 ₹175B
FY26 ₹197B

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Cite: Fair Value Calculator (2026). "Canara Bank Fair Value". https://www.fairvalue-calculator.com/stock/CANBK

Peer Group

Banks - Regional · 1082 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 43 · Bottom 25%
Fair Value upside +91% · Top 25%
Return on equity (TTM) 16% · Top 25%
Return on assets 1% · Above median
Net margin (TTM) 37% · Above median
Operating margin (TTM) -32% · Bottom 25%
Revenue growth -47% · Bottom 25%
Dividend yield (TTM) 3.3% · Above median
Debt / equity 0.76× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 5.8× · Cheaper than 75% of peers
P/B 0.97× · Cheaper than median
P/S (TTM) 2.38× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 39
FUTURE 0 · sector 44
PAST 64 · sector 41
HEALTH 62 · sector 85
DIVIDEND 67 · sector 49

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Canara Bank (CANBK) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ₹251.80 versus a price of ₹131.70, about +91% (undervalued).
What is the fair value of CANBK?
Our model-based fair value for Canara Bank is ₹251.80 (as of Jul 16, 2026), built from audited fundamentals. The current price is ₹131.70.
What is the quality score of CANBK?
Canara Bank has a Quality Score of 40/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Canara Bank (CANBK)?
Canara Bank reported trailing-twelve-month revenue of about ₹483B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of CANBK?
The net profit margin of Canara Bank is about 37.0%, meaning it keeps roughly 37.0% of revenue as net income. Based on the latest reported figures.
Does Canara Bank pay a dividend?
Canara Bank currently shows a dividend yield of about 3.16% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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