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IDFC First Bank Limited (IDFCFIRSTB) Fair Value & Analysis

Financial Services · IN · Market cap ₹739B (≈ $7.8B) · ISIN INE092T01019

What is IDFC First Bank Limited really worth?

IF IDFC First Bank Limited IDFCFIRSTB · BSE
Price₹86.67
Fair Value₹28.04
Upside−67.7%
Quality35/100

Below-average quality, and trading another 209% above our fair value of ₹28.04.

As of Aug 21, 2026, the fair value of IDFC First Bank Limited is ₹28.04 per share against a price of ₹86.67, so the fair value sits 68% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Highly profitable · 32.8% net margin
Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +25.0 %/yr)
!Moderate moat 54/100
!Evidence only low, so the estimate is less certain
Evidence: Low Range ₹21.03 – ₹35.05

Fair value as of: Aug 21, 2026

From 6 valuation models · updated 16 days ago

Share price +2.1% 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 (₹35.05). The favourable scenario is already priced in.
  • Weak quality (35/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • 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)

₹98.62 ₹29.02 Fair Value ₹28.04 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 21, 2026.

How to read this chart

60‑month range ₹29.02 – ₹98.62 · fair‑value band ₹21.03 – ₹35.05 · the ₹86.67 price screens above the ₹28.04 fair value. Dashed = 300-day average. As of Aug 21, 2026.

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Analysis

IDFC First Bank Limited (IDFCFIRSTB) currently trades at ₹86.67, while our model-based Fair Value estimate is ₹28.04, implying the stock looks roughly 209.1% overvalued today. The Quality Score stands at 35/100 (below-average quality), in the Financial Services sector. Bull case: the Economic Profit group reads highest at a median of ₹40.03 per share, and 0 of the 6 models we run sit above the ₹86.67 price. Bear case: the Dividend Discount group reads lowest at ₹5.90, and 6 of the 6 models stay below the price. Evidence for this calculation is low.

Revenue declined 1.1% year over year. It earns a return on equity of 3.7%. Net debt stands at ₹239B. The stock trades on a trailing P/E of 33.5. Fundamentals as of Aug 21, 2026

Our scenario range runs from ₹21.03 (bear case) to ₹35.05 (bull case); at ₹86.67, 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 2% below its 52-week high and 50% 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 −68%, IDFCFIRSTB screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹1.13 per share, which is 4.7 % 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 ₹40.84 ₹40.03 ₹35.25 76
DDM Multi-Stage ₹3.30 ₹5.90 ₹7.51 66
Gordon GGM ₹3.30 ₹7.21 ₹12.13 65
All 6 models by family
Dividend Discount
Gordon GGM ₹3.30 ₹7.21 ₹12.13 65
DDM Multi-Stage ₹3.30 ₹5.90 ₹7.51 66
Multiples
P/E Multiple ₹18.22 ₹24.30 ₹30.37 63
P/B Multiple ₹23.83 ₹31.77 ₹39.72 55
Asset-Based
NCAV (Graham) ₹27.51 ₹36.86 ₹55.01 54
Economic Profit
Residual Income best evidence ₹40.84 ₹40.03 ₹35.25 76

Widest divergence: Economic Profit (₹40.03) versus Dividend Discount (₹5.90). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 33.5
P/S ratio 1.83 P/E × margin
EPS (TTM) ₹2.59 price ÷ EPS = P/E 33.5
Dividend yield 0.4% payout 13.4%
Net margin 5.5% FY2026
Return on equity 3.7% TTM
More key figures
Profitability
Return on assets (EBIT) −4,071% avg 3y
Operating margin 33.4% TTM
Growth
Revenue growth (YoY) −1.1% 3y avg +19.8%
EPS growth (YoY) −23.2%
Balance sheet & cash flow
Free cash flow ₹60.4B FY2026
Net debt ₹239B FY2026 · ≈ 4.0 yrs of FCF

Figures from reported company fundamentals · as of Aug 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 35/100

Of which business quality 36 · Market factors (momentum, volatility) 74

Profitability 16
Margins and returns on capital today
Quality Growth 63
Are margins and returns improving?
Cashflow 89
Earnings quality: real cash, not paper profit
Fin. Strength 11
Balance sheet, leverage, solvency risk
Investment 35
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 79
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

IDFC First Bank Limited engages in the provision of various banking and financial services to corporates, individuals, multi-national companies, SMEs/entrepreneurs, financial institutions, and the government in India. The company operates through four segments: Treasury, Corporate and Wholesale Banking, Retail Banking, and Other Banking Business.

Full company description

IDFC First Bank Limited engages in the provision of various banking and financial services to corporates, individuals, multi-national companies, SMEs/entrepreneurs, financial institutions, and the government in India. The company operates through four segments: Treasury, Corporate and Wholesale Banking, Retail Banking, and Other Banking Business. It accepts savings, corporate salary, current, business, and nostro/vostro accounts; fixed and recurring deposits; and provides debit, credit, and prepaid cards, as well as payment services. The company also offers personal, consumer durable, home, car, two-wheeler, commercial vehicle, education, gold, business, working capital, construction equipment, professional, term, foreign currency, and micro enterprise loans; farmer producer organization finance; and loan against property and loans for women. In addition, it provides supply chain financing products, including trade finance, vendor and dealer finance, and factoring/receivables purchase; treasury and capital market services; wealth management services; and trade finance and services comprising import-export solutions, bank guarantees, domestic trade, and remittance products, as well as BXP, an online trade portal. Further, the company offers investment services consisting of mutual funds, gold bonds, demat and trading account, and investment linked insurance solutions; distributes term, life, general, health, motor, home, travel, business, and pradhan mantri insurance products, as well as pension, savings, and annuity plans; and provides safe deposit lockers, overdrafts, and mobile and Internet banking services. Additionally, it provides cash management services; escrow services; and NRI banking services. The company was formerly known as IDFC Bank Limited and changed its name to IDFC First Bank Limited in January 2019. IDFC First Bank Limited was founded in 1997 and is headquartered in Mumbai, India.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

IDFC First Bank Limited reported revenue of ₹294B in FY2026 versus ₹133B in FY2022, a compound +22.0%/yr. Reported net income was ₹16.1B in FY2026, compounding +86.8%/yr from FY2022. FY2022 was a trough year, so the rate overstates the trend.

Growth Quality 86/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹294B
Latest YoY
+11.5%
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.
+19.8%
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.
+25.0%
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.
+37.4%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+58.2% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+57.8%
Dividend yield0.4%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 57.8% vs 10Y 6.6%, picking up
Worst earnings drop329% (2020) (loss year, drop beyond 100%) · in INR
Revenue +22.0%/yr
FY22 ₹133B
FY23 ₹171B
FY24 ₹225B
FY25 ₹264B
FY26 ₹294B
Net income +86.8%/yr
FY22 ₹1.3B
FY23 ₹24.8B
FY24 ₹29.4B
FY25 ₹14.9B
FY26 ₹16.1B

IDFCFIRSTB screens 209% overvalued. Compare with DBS Group →

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Cite: Fair Value Calculator (2026). "IDFC First Bank Limited Fair Value". https://www.fairvalue-calculator.com/stock/IDFCFIRSTB.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 37 · Bottom 25%
Fair Value upside −67% · Bottom 25%
Return on equity (TTM) 4% · Bottom 25%
Return on assets 0% · Bottom 25%
Net margin (TTM) 33% · Above median
Operating margin (TTM) 33% · Below median
Revenue growth −1% · Bottom 25%
Dividend yield (TTM) 0.4% · Bottom 25%
Debt / equity 0.82× · Higher than 75% of peers

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 33.5× · Pricier than 75% of peers
P/B 1.56× · Pricier than 75% of peers
P/S (TTM) 24.42× · Pricier than 75% of peers
P/FCF 0.1× · Cheaper than 75% of peers

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 21, 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 IDFC First Bank Limited (IDFCFIRSTB) overvalued or undervalued?
As of Aug 21, 2026, our model estimates a fair value of ₹28.04 versus a price of ₹86.67, about −68% upside (overvalued).
What is the fair value of IDFCFIRSTB?
Our model-based fair value for IDFC First Bank Limited is ₹28.04 (as of Aug 21, 2026), built from audited fundamentals. The current price: ₹86.67.
What is the quality score of IDFCFIRSTB?
IDFC First Bank Limited has a Quality Score of 35/100. 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 IDFC First Bank Limited (IDFCFIRSTB)?
Our model-based price target is the fair value of ₹28.04 (as of Aug 21, 2026) from 6 valuation models. Cautious scenario ₹21.03, optimistic scenario ₹35.05. It is a calculation from audited fundamentals, not an analyst target.
What is the IDFC First Bank Limited stock forecast for 2026?
Our models put fair value at ₹28.04, about −68% upside versus a price of ₹86.67 (overvalued). Cautious scenario ₹21.03, optimistic scenario ₹35.05. The calculation is refreshed regularly with new filings.
What is the net profit margin of IDFCFIRSTB?
The net profit margin of IDFC First Bank Limited is about 32.8%, meaning it keeps roughly 32.8% of revenue as net income. Based on the latest reported figures.
Does IDFC First Bank Limited pay a dividend?
IDFC First Bank Limited currently shows a dividend yield of about 0.40% relative to its recent price (as of Aug 21, 2026).
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