EN DE

City Union Bank Limited (CUB) Fair Value & Analysis

Financial Services · IN · Market cap ₹198B

CU City Union Bank Limited CUB · NSE
Price₹221.03
Fair Value₹161.65
Upside-26.9%
Quality54/100
Watch City Union Bank Limited for free, get notified when fair value or trend changes. Watch for free
Healthy Growth
Highly profitable · 37.6% net margin
Low debt · generates free cash flow
0.73% dividend yield
Ranks above peers (9/14)
Wide moat 72/100
Evidence: High Range ₹121.24 – ₹202.06 Share as image

Fair value as of: Aug 13, 2026

From 6 valuation models · updated 6 days ago

Fair value updated Aug 13, 2026, revised from ₹174.01 to ₹161.65 (−7.1%) since Aug 2, 2026. Share price −1.8% over the past month.

A solid business, but screening 27% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹202.06). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

₹50,331 ₹80.17 Fair Value ₹161.65 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹80.17 – ₹50,331 · fair‑value band ₹121.24 – ₹202.06 · the ₹221.03 price screens above the ₹161.65 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

City Union Bank Limited (CUB) currently trades at ₹221.03, while our model-based Fair Value estimate is ₹161.65, implying the stock looks roughly 26.9% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, City Union Bank Limited generated revenue of ₹35.3B at a net margin of 37.6%. Revenue grew 23.6% year over year. It earns a return on equity of 13.2%. The balance sheet holds a net cash position of ₹36.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹121.24 (bear case) to ₹202.06 (bull case); at ₹221.03, 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. For context, the median of 10 Financial Services peers we cover trades at 46% fair-value upside, at -27%, CUB screens richer 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 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 ₹100.01 ₹122.94 ₹299.73 76
Gordon GGM ₹13.67 ₹28.43 ₹45.10 70
P/E Multiple ₹130.51 ₹174.01 ₹217.52 63
All 6 models by family
Dividend Discount
Gordon GGM ₹13.67 ₹28.43 ₹45.10 70
DDM Multi-Stage ₹13.67 ₹23.97 ₹29.84 61
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 50
Economic Profit
Residual Income ₹100.01 ₹122.94 ₹299.73 76

Widest divergence: Multiples (₹149.28) versus Dividend Discount (₹23.97). Highest evidence: Residual Income (76).

Notify me when CUB reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) ₹35.3B
Revenue growth (YoY) +23.6%
Net margin 37.6%
Return on equity 13.2%
Free cash flow ₹12.7B FY2026
P/E ratio 16.5
More key figures
Operating margin 48.1%
EPS (TTM) ₹13.36
Dividend yield 0.7%
EPS growth (YoY) +25.1%
Net cash ₹36.0B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 50 · Market factors (momentum, volatility) 54

Profitability 31
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 31
Balance sheet, leverage, solvency risk
Investment 53
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 65
Price trend over the last 3–12 months (market factor)
52W Momentum 38
Distance to the 52-week high (market factor)
Net Issuance 83
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

City Union Bank Limited provides various banking products and services in India. It operates in four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations.

Full company description

City Union Bank Limited provides various banking products and services in India. It operates in four segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The company offers savings, current, staff salary, and resident foreign currency accounts; fixed, recurring, flexifix, and income tax saver deposits; personal and agricultural gold, personal, consumer, home/housing, property, education, working capital, business, and foreign currency loans, as well as loan against property, gold-based overdraft, cash credits, bill finance, bank guarantee, and letter of credit; international business services, including export, import, fx retail, remittance, correspondent banking, and treasury risk management services; sovereign gold bond; debit, prepaid, and credit cards; NRI banking products and services; and insurance products comprising life, health, and general insurance products, as well as social security schemes. It also provides tech products and services, such as net/online and mobile banking; cash and wealth management; electronic fund transfer; green pins; wallet; point of sale; and automated teller machines, as well as demat, bill payment, GST and TAX payments, and digital signature services. In addition, the company offers payments to government, including online taxes and electricity bill payment; agri related information, academic, and kiosk services; and support services, such as safe deposit locker facilities, value added, 24/7 customer care, and account aggregator. The company was formerly known as The Kumbakonam City Union Bank Limited and changed its name to City Union Bank Limited in December 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

FY2022 – FY2026 · reported fiscal years

City Union Bank Limited reported revenue of ₹79.1B in FY2026 versus ₹48.6B in FY2022, a compound +12.9%/yr. Reported net income was ₹13.3B in FY2026, compounding +14.9%/yr from FY2022.

Growth Quality 92/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹79.1B
Latest YoY
+17.5%
Avg. 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.
+12.7%
Avg. 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.
+10.4%
Avg. growth/yr (21Y) 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.
+16.4%
Revenue +12.9%/yr
FY22 ₹48.6B
FY23 ₹55.2B
FY24 ₹60.1B
FY25 ₹67.3B
FY26 ₹79.1B
Net income +14.9%/yr
FY22 ₹7.6B
FY23 ₹9.4B
FY24 ₹10.2B
FY25 ₹11.2B
FY26 ₹13.3B
Character of growth · EPS growth decomposed (2015-2026) +10.9 % p.a.
Revenue per share +8.1 pp

of which total revenue +8.3 pp · buybacks/dilution −0.3 pp

EBIT margin +1.6 pp
Tax rate +0.9 pp
Residual (interest, one-offs) +0.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

CUB screens 27% overvalued. Compare with PT Bank Central Asia Tbk →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

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

Peer Group

Banks - Regional · 1088 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 55 · Above median
Fair Value upside −27% · Bottom 25%
Return on equity (TTM) 13% · Top 25%
Return on assets 2% · Top 25%
Net margin (TTM) 38% · Top 25%
Operating margin (TTM) 48% · Above median
Revenue growth 24% · Top 25%
Dividend yield (TTM) 0.7% · Bottom 25%

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 16.5× · Pricier than 75% of peers
P/B 1.88× · Pricier than 75% of peers
P/S (TTM) 5.62× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than 75% of peers
EV/EBITDA 6.1× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 34
FUTURE100 · sector 44
PAST53 · sector 41
HEALTH100 · sector 85
DIVIDEND14 · sector 50

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

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 Aug 13, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,350 IDR 4,637 IDR -27%
KB Financial Group 105560 168,100 KRW 220,258 KRW +31%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 3,110 IDR 3,792 IDR +22%
PT Bank Mandiri (Persero) Tbk BMRI 4,150 IDR 6,067 IDR +46%
Banco Bradesco S.A BBD 5,120 ARS 8,400 ARS +64%
Shinhan Financial Group 055550 103,800 KRW 146,032 KRW +41%
Hana Financial Group 086790 127,900 KRW 210,506 KRW +65%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,500 VND 45,959 VND -23%
Woori Financial Group 316140 33,000 KRW 60,758 KRW +84%

Compare City Union Bank Limited with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Financial Services stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued High-Quality StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is City Union Bank Limited (CUB) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹161.65 versus a price of ₹221.03, about −27% (overvalued).
What is the fair value of CUB?
Our model-based fair value for City Union Bank Limited is ₹161.65 (as of Aug 13, 2026), built from audited fundamentals. The current price: ₹221.03.
What is the quality score of CUB?
City Union Bank Limited has a Quality Score of 54/100. 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 revenue of City Union Bank Limited (CUB)?
City Union Bank Limited reported trailing-twelve-month revenue of about ₹35.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of CUB?
The net profit margin of City Union Bank Limited is about 37.6%, meaning it keeps roughly 37.6% 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 0.73% relative to its recent price (as of Aug 13, 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.

14 days Pro free · no card

Track City Union Bank Limited and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.