Indian Bank (INDIANB) fair value: what the stock is really worth
We calculate from audited financials what Indian Bank is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 18, 2026.
How to read this chart
60‑month range ₹100.90 – ₹970.87 · fair‑value band ₹571.33 – ₹1,144 · the ₹841.00 price screens above the ₹726.14 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 18, 2026.
Indian Bank provides various banking products and services. It offers deposit products, including savings bank and current accounts, term deposits, and non-resident Indian (NRI) accounts.
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Indian Bank provides various banking products and services. It offers deposit products, including savings bank and current accounts, term deposits, and non-resident Indian (NRI) accounts. The company also provides agriculture, MSME, corporate, online, home, mortgage, vehicle, personal, educational, and jewel loans; supply chain finance; 59 minutes loans; loan/OD against deposits, NSC/KVP/ relief bonds of RBI/LIC policies; and other retail/personal loans. In addition, it offers digital products, including IndOASIS, internet and SMS banking, debit and credit cards, national common mobility cards, prepaid card, mutual funds, IPO, demat, and trading services; point of sale systems; online collection products; cash management services; and other products, services, and schemes. The company operates through multiple branches in India and overseas; as well as ATMs and BNAs. Indian Bank was incorporated in 1907 and is based in Chennai, India.
Stock analysis
Indian Bank (INDIANB) currently trades at ₹841.00, while our model-based Fair Value estimate is ₹726.14, implying the stock looks roughly 15.8% overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ₹831.95 per share, and 1 of the 6 models we run sit above the ₹841.00 price.
Bear case: the Dividend Discount group reads lowest at ₹279.54, and 5 of the 6 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹571.33 (bear) to ₹1,144 (bull), the price of ₹841.00 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 52/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Indian Bank reported revenue of ₹783B in FY2026 versus ₹463B in FY2022, a compound +14.1%/yr. Reported net income was ₹117B in FY2026, compounding +29.7%/yr from FY2022.
Key figures
Market cap ₹1.1T (≈ $11.9B) · P/E ratio 9.7 · P/S ratio 1.45 · EPS (TTM) ₹86.90 · Dividend yield 2.2% · Net margin 14.9% · Return on equity 15.4% · Return on assets (EBIT) 1.0%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 16% below its 52-week high and 39% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −31% fair-value upside, at −14%, INDIANB screens cheaper than that median.
Fair Value models
Bear ₹571.33Fair Value ₹726.14Bull ₹1,144
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹35.28 per share) are deliberately not added.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 ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+8.7%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+14.1%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+11.6%
Revenue growth 22 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+15.3%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. 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.
+27.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+25.6%
Dividend (yield on the price)2.2%
Pace: 5 vs 10 years ⓘ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.26% vs 19%, picking up
Profit margin 2021 to 2026 ⓘ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.7% → 20%
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−24.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−5.5%
Yearly sales growth analysts expect, extended to five years.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Banks - Regional · 1074 stocks
Beats the industry median on 10/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score53 · Below median
Fair Value upside+4% · Above median
Profitability
Return on equity (TTM)16% · Top 25%
Return on assets1% · Above median
Net margin (TTM)36% · Above median
Operating margin (TTM)48% · Above median
Growth and dividend
Revenue growth10% · Above median
Dividend yield (TTM)2.2% · Below median
Balance sheet
Debt / equity0.52× · Above median
Valuation Multiplesvs Banks - Regional median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Indian Bank Fair Value". https://www.fairvalue-calculator.com/stock/INDIANB
Frequently asked questions
Is Indian Bank (INDIANB) overvalued or undervalued?
As of Sep 18, 2026, our model estimates a fair value of ₹726.14 versus a price of ₹841.00, about −14% upside (overvalued).
What is the fair value of INDIANB?
Our model-based fair value for Indian Bank is ₹726.14 (as of Sep 18, 2026), built from audited fundamentals. The current price: ₹841.00.
What is the quality score of INDIANB?
Indian Bank has a Quality Score of 52/100. 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 Indian Bank (INDIANB)?
Our model-based price target is the fair value of ₹726.14 (as of Sep 18, 2026) from 6 valuation models. Cautious scenario ₹571.33, optimistic scenario ₹1,144. It is a calculation from audited fundamentals, not an analyst target.
What is the Indian Bank stock forecast for 2026?
Our models put fair value at ₹726.14, about −14% upside versus a price of ₹841.00 (overvalued). Cautious scenario ₹571.33, optimistic scenario ₹1,144. The calculation is refreshed regularly with new filings.
What is the revenue of Indian Bank (INDIANB)?
Indian Bank reported trailing-twelve-month revenue of about ₹343B (latest available figure, as of Sep 18, 2026).
Does Indian Bank pay a dividend?
Indian Bank currently shows a dividend yield of about 2.17% relative to its recent price (as of Sep 18, 2026).
What growth is priced into Indian Bank (INDIANB)?
For today's price to be fair in a discounted-cash-flow model, Indian Bank would have to grow free cash flow by -24.5 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +11.6 % per year. As of Sep 18, 2026.
What discount rate (WACC) does the fair value of INDIANB use?
Our models discount Indian Bank at 10.4 %: a base by market capitalisation (large), damped by beta 0.28, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Indian Bank that is -24.5 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has Indian Bank (INDIANB) delivered so far?
Over the past 5 years revenue at Indian Bank grew +11.6 % a year. The price currently implies -24.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Indian Bank (INDIANB) growing?
The median revenue growth in the sector is +8.1 % a year. That is the yardstick for the growth priced into Indian Bank (-24.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Indian Bank (INDIANB)?
The free-cash-flow yield on the price is 29.40 %: that much free cash flow Indian Bank produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Indian Bank (INDIANB)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Indian Bank it is ₹726.14 per share (as of Sep 18, 2026), against a price of ₹841.00. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Indian Bank stock overvalued or undervalued in 2026?
As of Sep 18, 2026, INDIANB trades above its calculated fair value: price ₹841.00, fair value ₹726.14, a gap of about −14% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of INDIANB?
No. The price is what the market pays today (₹841.00); the fair value is what the company's own numbers justify (₹726.14). For Indian Bank the two are ₹114.86 per share apart. That gap is exactly why we show both numbers side by side.
How much is Indian Bank worth?
The market values Indian Bank at about ₹1.1T (market capitalisation, as of Sep 18, 2026). Per share that is ₹841.00; our models calculate a fair value of ₹726.14 per share.
What do the bullish and bearish scenarios say about INDIANB?
Our models span a range for Indian Bank: cautious scenario ₹571.33, base ₹726.14, optimistic ₹1,144 per share (as of Sep 18, 2026, price ₹841.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of INDIANB?
Indian Bank trades at a price-to-earnings ratio of 9.7 (as of Sep 18, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹726.14 is built from several models across several years. Other multiples: P/B 1.4, P/S 3.2, EV/EBITDA 5.5.
How solid is the balance sheet of Indian Bank (INDIANB)?
Balance-sheet figures for Indian Bank (as of Sep 18, 2026): return on equity 16.2%, debt of 0.52 per unit of equity. They feed the Quality Score of 52/100, which measures business quality independently of the share price.
How far is INDIANB from its 52-week high?
Indian Bank trades at ₹841.00, about 16% below its 52-week high of ₹1,001 and 39% above the low of ₹606.00 (as of Sep 18, 2026). Distance from the high says nothing about value: that is what the fair value of ₹726.14 is for.
Which stocks are comparable to Indian Bank?
From the same area (Financial Services) we also value DBS Group, China Merchants Bank Co, Intesa Sanpaolo S.p.A, HDFC Bank Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Indian Bank stock attractive at the current price?
The data as of Sep 18, 2026: price ₹841.00, calculated fair value ₹726.14 (−14%), Quality Score 52/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of INDIANB calculated?
We run Indian Bank through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹726.14, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.1 % above its aggregate fair value. Indian Bank itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Indian Bank (INDIANB)?
The closing price on Sep 21, 2026 was ₹841.00. Our model-based fair value is ₹726.14, about −14% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Indian Bank right now?
Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (₹571.33 to ₹1,144) leaves room in how you read the outcome. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Indian Bank (INDIANB) come from?
Earnings per share at Indian Bank grew +19.8 % a year from 2015 to 2026. Broken into its drivers: revenue per share +8.7 %, EBIT margin +11.6 %, tax rate −3.3 %, residual (interest, one-offs) +2.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Indian Bank
How large is the market capitalisation of Indian Bank (INDIANB)?
The market capitalisation of Indian Bank is ₹1.1T (≈ $11.9B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Indian Bank (INDIANB)?
The price-to-sales ratio of Indian Bank is 1.45 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Indian Bank (INDIANB)?
Earnings per share at Indian Bank are ₹86.90 (price ÷ EPS = P/E 9.7). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Indian Bank (INDIANB)?
The dividend yield of Indian Bank is 2.2% (payout 21.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Indian Bank (INDIANB)?
The net margin of Indian Bank is 14.9% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Indian Bank (INDIANB)?
The return on equity (ROE) of Indian Bank is 15.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Indian Bank (INDIANB)?
On an EBIT basis the return on assets of Indian Bank is 1.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Indian Bank (INDIANB)?
The operating margin of Indian Bank is 46.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Indian Bank (INDIANB)?
Revenue at Indian Bank is growing +1.5% versus a year earlier (3y avg +14.1%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Indian Bank (INDIANB)?
Earnings per share at Indian Bank are growing +6.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Indian Bank (INDIANB) hold?
Indian Bank holds more cash than debt, ₹189B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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