Indian Overseas Bank (IOB) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Indian Overseas Bank ₹31.74, price ₹32.13, upside -1.2%, quality 55 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range ₹15.35 – ₹79.65 · fair‑value band ₹23.80 – ₹39.67 · the ₹32.13 price screens above the ₹31.74 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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Indian Overseas Bank provides various banking products and services in India and internationally. It operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. The company accepts various deposits, such as demand, savings, current, fixed, recurring, tax saver, and term deposits.
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Indian Overseas Bank provides various banking products and services in India and internationally. It operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. The company accepts various deposits, such as demand, savings, current, fixed, recurring, tax saver, and term deposits. Its loan products include home, vehicle, jewel, consumer durable, education, reverse mortgage, personal, agricultural, and corporate loans, as well as loan against the property and sovereign gold bond; and micro, small, and medium enterprise loans. It also provides debit and credit cards, export credit, NRI accounts, agricultural and rural banking products, mutual funds, lockers, merchant banking, and internet and mobile banking services; depository services; and life, health, personal accident, digital, and motor insurance products. It operates branches, ATMs, and business correspondents in India; and overseas branches in Singapore, Hong Kong, Colombo, and Bangkok. Indian Overseas Bank was incorporated in 1936 and is headquartered in Chennai, India.
Stock analysis
Indian Overseas Bank (IOB) currently trades at ₹32.13, while our model-based Fair Value estimate is ₹31.74, implying the stock looks roughly 1.2% fairly valued today.
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Valuation
Bull case: the Multiples group reads highest at a median of ₹26.89 per share, and 1 of the 4 models we run sit above the ₹32.13 price.
Bear case: the Asset-Based group reads lowest at ₹12.87, and 3 of the 4 models stay below the price. Evidence for this calculation is low.
Scenario range: ₹23.80 (bear) to ₹39.67 (bull), the price of ₹32.13 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 55/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Indian Overseas Bank reported revenue of ₹377B in FY2026 versus ₹216B in FY2022, a compound +14.9%/yr. Reported net income was ₹54.2B in FY2026, compounding +33.4%/yr from FY2022.
Key figures
Market cap ₹620B (≈ $6.4B) · P/E ratio 10.8 · P/S ratio 1.55 · EPS (TTM) ₹2.98 · Net margin 14.4% · Return on equity 16.5% · Return on assets (EBIT) 0.8% · Operating margin 37.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 21% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −38% fair-value upside, at −1%, IOB screens cheaper than that median.
Fair Value models
Bear ₹23.80Fair Value ₹31.74Bull ₹39.67
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 (₹1.45 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.93/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+11.8%
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.
+17.1%
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.
+10.9%
Start year 2021 (pandemic). Over 10 years: +3.8% a year
Revenue growth 21 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.
+10.4%
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What shareholders gained per year (last 5 years), in INR (mathematically smoothed) ⓘ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. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. 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.
+36.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+36.2%
Dividend (yield on the price)0.0%
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.3% → 17%
2026 sits 99% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far.
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).
−15.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about −19.0% a year for the price.
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 8/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score56 · Above median
Fair Value upside−1% · Above median
Profitability
Return on equity (TTM)17% · Top 25%
Return on assets1% · Above median
Net margin (TTM)37% · Above median
Operating margin (TTM)37% · Below median
Growth and dividend
Revenue growth48% · Top 25%
Balance sheet
Debt / equity1.14× · Highest 25%
Valuation Multiplesvs Banks - Regional median · lower = cheaper
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). "Indian Overseas Bank Fair Value". https://www.fairvalue-calculator.com/stock/IOB
Frequently asked questions
Is Indian Overseas Bank (IOB) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of ₹31.74 versus a price of ₹32.13, about −1% upside (fairly valued).
What is the fair value of IOB?
Our model-based fair value for Indian Overseas Bank is ₹31.74 (as of Sep 24, 2026), built from audited fundamentals. The current price: ₹32.13.
What is the quality score of IOB?
Indian Overseas Bank has a Quality Score of 55/100. 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 Overseas Bank (IOB)?
Our model-based price target is the fair value of ₹31.74 (as of Sep 24, 2026) from 4 valuation models. Cautious scenario ₹23.80, optimistic scenario ₹39.67. It is a calculation from audited fundamentals, not an analyst target.
What is the Indian Overseas Bank stock forecast for 2026?
Our models put fair value at ₹31.74, about −1% upside versus a price of ₹32.13 (fairly valued). Cautious scenario ₹23.80, optimistic scenario ₹39.67. The calculation is refreshed regularly with new filings.
What is the revenue of Indian Overseas Bank (IOB)?
Indian Overseas Bank reported trailing-twelve-month revenue of about ₹163B (latest available figure, as of Sep 24, 2026).
What growth is priced into Indian Overseas Bank (IOB)?
For today's price to be fair in a discounted-cash-flow model, Indian Overseas Bank would have to grow free cash flow by -15.7 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.9 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of IOB use?
Our models discount Indian Overseas Bank at 10.9 %: a base by market capitalisation (mid), damped by beta 0.25, 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 Overseas Bank that is -15.7 % per year a year over ten years, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Indian Overseas Bank (IOB) delivered so far?
Over the past 5 years revenue at Indian Overseas Bank grew +10.9 % a year. The price currently implies -15.7 % 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 Overseas Bank (IOB) growing?
The median revenue growth in the sector is +8.4 % a year. That is the yardstick for the growth priced into Indian Overseas Bank (-15.7 % 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 Overseas Bank (IOB)?
The free-cash-flow yield on the price is 29.12 %: that much free cash flow Indian Overseas Bank produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), 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 Overseas Bank (IOB)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Indian Overseas Bank it is ₹31.74 per share (as of Sep 24, 2026), against a price of ₹32.13. It is the blended result of 4 valuation models (cash flow, earnings, asset, dividend).
Is Indian Overseas Bank stock overvalued or undervalued in 2026?
As of Sep 24, 2026, IOB trades above its calculated fair value: price ₹32.13, fair value ₹31.74, a gap of about −1% (fairly valued). 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 IOB?
No. The price is what the market pays today (₹32.13); the fair value is what the company's own numbers justify (₹31.74). For Indian Overseas Bank the two are ₹0.3900 per share apart. That gap is exactly why we show both numbers side by side.
How much is Indian Overseas Bank worth?
The market values Indian Overseas Bank at about ₹620B (market capitalisation, as of Sep 24, 2026). Per share that is ₹32.13; our models calculate a fair value of ₹31.74 per share.
What do the bullish and bearish scenarios say about IOB?
Our models span a range for Indian Overseas Bank: cautious scenario ₹23.80, base ₹31.74, optimistic ₹39.67 per share (as of Sep 24, 2026, price ₹32.13). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of IOB?
Indian Overseas Bank trades at a price-to-earnings ratio of 10.8 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹31.74 is built from several models across several years. Other multiples: P/B 1.7, P/S 3.8, EV/EBITDA 11.6.
How solid is the balance sheet of Indian Overseas Bank (IOB)?
Balance-sheet figures for Indian Overseas Bank (as of Sep 24, 2026): return on equity 16.5%, debt of 1.14 per unit of equity. They feed the Quality Score of 55/100, which measures business quality independently of the share price.
How far is IOB from its 52-week high?
Indian Overseas Bank trades at ₹32.13, about 21% below its 52-week high of ₹40.67 and 2% above the low of ₹31.38 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of ₹31.74 is for.
Which stocks are comparable to Indian Overseas 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 Overseas Bank stock attractive at the current price?
The data as of Sep 24, 2026: price ₹32.13, calculated fair value ₹31.74 (−1%), Quality Score 55/100, from 4 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 IOB calculated?
We run Indian Overseas Bank through 4 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 ₹31.74, 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 14.1 % above its aggregate fair value. Indian Overseas 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 Overseas Bank (IOB)?
The closing price on Sep 23, 2026 was ₹32.13. Our model-based fair value is ₹31.74, about −1% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Indian Overseas Bank right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Key figures of Indian Overseas Bank
How large is the market capitalisation of Indian Overseas Bank (IOB)?
The market capitalisation of Indian Overseas Bank is ₹620B (≈ $6.4B). 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 Overseas Bank (IOB)?
The price-to-sales ratio of Indian Overseas Bank is 1.55 (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 Overseas Bank (IOB)?
Earnings per share at Indian Overseas Bank are ₹2.98 (price ÷ EPS = P/E 10.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Indian Overseas Bank (IOB)?
The net margin of Indian Overseas Bank is 14.4% (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 Overseas Bank (IOB)?
The return on equity (ROE) of Indian Overseas Bank is 16.5% (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 Overseas Bank (IOB)?
On an EBIT basis the return on assets of Indian Overseas Bank is 0.8% (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 Overseas Bank (IOB)?
The operating margin of Indian Overseas Bank is 37.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Indian Overseas Bank (IOB)?
Revenue at Indian Overseas Bank is growing +48.1% versus a year earlier (3y avg +17.1%). 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 Overseas Bank (IOB)?
Earnings per share at Indian Overseas Bank are growing +45.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Indian Overseas Bank (IOB) carry?
The net debt of Indian Overseas Bank is ₹264B (fiscal year 2026, ≈ 1.5 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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