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City Union Bank Limited (CUB) Fair Value & Analysis

Financial Services · IN · Market cap ₹223B (≈ $2.4B) · ISIN INE491A01021

What is City Union Bank Limited really worth?

CU City Union Bank Limited CUB · BSE
Price₹236.15
Fair Value₹161.65
Upside−31.6%
Quality28/100

Below-average quality, and trading another 46% above our fair value of ₹161.65.

As of Aug 20, 2026, the fair value of City Union Bank Limited is ₹161.65 per share against a price of ₹236.15, so the fair value sits 32% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Highly profitable · 37.8% net margin
Low debt · generates free cash flow
Ranks above peers (8/10)
Wide moat 67/100

Risks

!Mixed Growth (revenue 5y +122.9 %/yr)
!Evidence only medium, so the estimate is less certain
Evidence: Medium Range ₹121.24 – ₹202.06

Fair value as of: Aug 20, 2026

From 4 valuation models · updated 17 days ago

Share price +15.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹202.06). The favourable scenario is already priced in.
  • Weak quality (28/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

₹238.30 ₹79.77 Fair Value ₹161.65 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range ₹79.77 – ₹238.30 · fair‑value band ₹121.24 – ₹202.06 · the ₹236.15 price screens above the ₹161.65 fair value. Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

City Union Bank Limited (CUB) currently trades at ₹236.15, while our model-based Fair Value estimate is ₹161.65, implying the stock looks roughly 46.1% overvalued today. The Quality Score stands at 28/100 (below-average quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of ₹149.28 per share, and 0 of the 4 models we run sit above the ₹236.15 price. Bear case: the Asset-Based group reads lowest at ₹71.44, and 4 of the 4 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, City Union Bank Limited generated revenue of ₹37.1B at a net margin of 37.8%. Revenue grew 23.3% year over year. It earns a return on equity of 13.2%. The stock trades on a trailing P/E of 16.7. Fundamentals as of Aug 20, 2026

Our scenario range runs from ₹121.24 (bear case) to ₹202.06 (bull case); at ₹236.15, the current price sits above 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 4% below its 52-week high and 65% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at −32%, CUB screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ₹9.64 per share, which is 6.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence ₹101.79 ₹126.66 ₹318.74 66
P/E Multiple ₹130.51 ₹174.01 ₹217.52 63
P/B Multiple ₹111.96 ₹149.28 ₹186.60 55
All 4 models by family
Multiples
P/E Multiple ₹130.51 ₹174.01 ₹217.52 63
P/B Multiple ₹111.96 ₹149.28 ₹186.60 55
Asset-Based
NCAV (Graham) ₹53.32 ₹71.44 ₹106.63 54
Economic Profit
Residual Income best evidence ₹101.79 ₹126.66 ₹318.74 66

Widest divergence: Multiples (₹149.28) versus Asset-Based (₹71.44). Highest evidence: Residual Income (66).

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Key figures & financial health

P/E ratio 16.7
P/S ratio 5.73 P/E × margin
EPS (TTM) ₹14.13 price ÷ EPS = P/E 16.7
Dividend yield 0.7% payout 11.1%
Net margin 34.3% FY2025
Return on equity 13.2% TTM
More key figures
Profitability
Return on assets (EBIT) 3.5% avg 5y
Operating margin 51.0% TTM
Growth
Revenue (TTM) ₹37.1B TTM
Revenue growth (YoY) +23.3% 3y avg +172%
EPS growth (YoY) +25.2%
Balance sheet & cash flow
Free cash flow ₹4.5B FY2025

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 28/100

Of which business quality 29 · Market factors (momentum, volatility) 79

Profitability 36
Margins and returns on capital today
Quality Growth 33
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 20
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 75
Price trend over the last 3–12 months (market factor)
52W Momentum 94
Distance to the 52-week high (market factor)
Net Issuance 0
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

City Union Bank Limited engages in the provision of various banking products and services to personal and corporate clients in India. The company operates through four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations.

Full company description

City Union Bank Limited engages in the provision of various banking products and services to personal and corporate clients in India. The company operates through four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. It offers savings and current accounts; fixed, flexi fix, recurring, and tax saver deposits; and NRI banking products and services. The company also provides consumer, two and four-wheeler, home, educational, property, personal and agricultural gold, working capital, business, foreign currency, agricultural term, and small road transport operator loans; cash credits, bank guarantees, letters of credit, and bills finance, as well as gold-based overdrafts facilities; and international business services, including export, import, remittance, correspondent banking, and treasury risk management services. In addition, it offers locker facilities, automated teller machines (ATMs), cash deposit machines/bulk note acceptors, and point of sales services, as well as demat and insurance products and services; and debit/prepaid and credit cards. Further, the company provides cash management, payment to government, national electronic fund transfer, immediate payment, real time gross settlement, national automatic clearing house, and other tech services. It operates through a network of branches; ATMs, including bulk note recycler machines; passbook kiosks; and cheque deposit kiosks. The company was formerly known as The Kumbakonam City Union Bank Limited and changed its name to City Union Bank Limited in November 1987. City Union Bank Limited was incorporated in 1904 and is based in Kumbakonam, India.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

City Union Bank Limited reported revenue of ₹38.6B in FY2025 versus ₹1.3B in FY2021, a compound +131.9%/yr. Reported net income was ₹13.3B in FY2025, compounding +384.0%/yr from FY2021.

Growth Quality 91/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
₹38.6B
Latest YoY
+1,346.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+172.5%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+122.9%
Avg. revenue growth/yr (10Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+54.4%
EBIT margin (trend) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
0.1% (2019) → 3.2% (2024)
Value creation/yr We only publish this rate when it is defensible. Reason: rate outside our plausibility band
not computed
Revenue +131.9%/yr
FY21 ₹1.3B
FY22 ₹1.9B
FY23 ₹2.2B
FY24 ₹2.7B
FY25 ₹38.6B
Net income +384.0%/yr
FY21 ₹24.2M
FY22 ₹26.5M
FY23 ₹39.9M
FY24 ₹66.6M
FY25 ₹13.3B

CUB screens 46% overvalued. Compare with DBS Group →

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Cite: Fair Value Calculator (2026). "City Union Bank Limited Fair Value". https://www.fairvalue-calculator.com/stock/CUB.BSE

Peer Group

Banks - Regional · 1070 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 29 · Bottom 25%
Fair Value upside −42% · Bottom 25%
Return on equity (TTM) 13% · Above median
Return on assets 2% · Top 25%
Net margin (TTM) 38% · Top 25%
Operating margin (TTM) 51% · Top 25%
Revenue growth 23% · Top 25%
Dividend yield (TTM) 0.7% · Bottom 25%

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 16.7× · Pricier than 75% of peers
P/B 2.11× · Pricier than 75% of peers
P/S (TTM) 6.00× · Pricier than 75% of peers
P/FCF 0.5× · Cheaper than 75% of peers
PEG 0.34× · Cheaper than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE0 · sector 0
PAST0 · sector 0
HEALTH0 · sector 100
DIVIDEND51 · sector 31

VALUE 0: the price sits above our fair-value range.

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

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.78 €5.66 −17%
HDFC Bank Limited HDB $23.18 $24.12 +4%
BNP Paribas SA BNP €104.54 €144.64 +38%
UniCredit S.p.A UCG €84.71 €77.62 −8%
Mizuho Financial Group MFG $10.74 $9.69 −10%
ICICI Bank Limited ICICIBANK ₹1,423 ₹835.21 −41%
Oversea-Chinese Banking Corporation O39 31.07 SGD 19.80 SGD −36%
CaixaBank, S.A CABK €13.52 €8.85 −35%

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Frequently asked questions

Is City Union Bank Limited (CUB) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of ₹161.65 versus a price of ₹236.15, about −32% upside (overvalued).
What is the fair value of CUB?
Our model-based fair value for City Union Bank Limited is ₹161.65 (as of Aug 20, 2026), built from audited fundamentals. The current price: ₹236.15.
What is the quality score of CUB?
City Union Bank Limited has a Quality Score of 28/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for City Union Bank Limited (CUB)?
Our model-based price target is the fair value of ₹161.65 (as of Aug 20, 2026) from 4 valuation models. Cautious scenario ₹121.24, optimistic scenario ₹202.06. It is a calculation from audited fundamentals, not an analyst target.
What is the City Union Bank Limited stock forecast for 2026?
Our models put fair value at ₹161.65, about −32% upside versus a price of ₹236.15 (overvalued). Cautious scenario ₹121.24, optimistic scenario ₹202.06. The calculation is refreshed regularly with new filings.
What is the revenue of City Union Bank Limited (CUB)?
City Union Bank Limited reported trailing-twelve-month revenue of about ₹37.1B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of CUB?
The net profit margin of City Union Bank Limited is about 37.8%, meaning it keeps roughly 37.8% of revenue as net income. Based on the latest reported figures.
Does City Union Bank Limited pay a dividend?
City Union Bank Limited currently shows a dividend yield of about 0.66% relative to its recent price (as of Aug 20, 2026).
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