The Karnataka Bank Limited (KTKBANK) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of The Karnataka Bank Limited ₹293, price ₹322, upside -8.9%, quality 39 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 Oct 2, 2026.
How to read this chart
60‑month range ₹45.78 – ₹343.05 · fair‑value band ₹278.29 – ₹331.87 · the ₹321.60 price screens above the ₹293.13 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 2, 2026.
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The Karnataka Bank Limited provides various banking and financial services in India. It operates through four segments: Treasury operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations.
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The Karnataka Bank Limited provides various banking and financial services in India. It operates through four segments: Treasury operations, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations. The Corporate/Wholesale Banking segment provides various fund and non-fund-based products, including term loans, working capital facilities, foreign exchange services, structured finance, as well as trade financing products, such as letters of credit, guarantees, and bill discounting. The Retail Banking segment offers home, automobile, personal, and education loans; loans against term deposits; loans against securities; and gold, small business, and agriculture loans to agriculture, MSME, housing, and education sectors. Its products include KBL Contractor Mitra, KBL Micro Mitra, KBL Export Mitra, KBL MSME, as well as KBL Mahila Udyog for financial support of women entrepreneurs. The Treasury segment engages in statutory reserves management, such as SLR and CRR; liquidity and treasury management; investment and trading activities; and foreign exchange activities. The Other Banking Operations segment offers a range of ancillary products and services, including collection of taxes, digital marketing initiatives, trade finance automation, doorstep gold loan, OMNI channel, corporate salary account, and enhanced whatsapp banking, as well as FASTag services. It also invests in sovereign debt instruments and other fixed income securities; mutual funds; certificates of deposits; floating rate instrument; forward contracts; and trades debt and equity securities. In addition, the company distributes insurance products. The Karnataka Bank Limited was incorporated in 1924 and is based in Mangalore, India.
Stock analysis
The Karnataka Bank Limited (KTKBANK) currently trades at ₹321.60, while our model-based Fair Value estimate is ₹293.13, so the stock looks roughly fairly valued today (gap 9.7%).
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Valuation
Bull case: the Multiples group reads highest at a median of ₹450.57 per share, and 2 of the 6 models we run sit above the ₹321.60 price.
Bear case: the Dividend Discount group reads lowest at ₹63.92, and 4 of the 6 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹278.29 (bear) to ₹331.87 (bull), the price of ₹321.60 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 39/100 (below-average quality), in the Financial Services sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
The Karnataka Bank Limited reported revenue of ₹103B in FY2026 versus ₹71.7B in FY2022, a compound +9.5%/yr. Reported net income was ₹13.1B in FY2026, compounding +26.7%/yr from FY2022.
Key figures
Market cap ₹122B (≈ $1.3B) · P/E ratio 8.5 · P/S ratio 1.08 · EPS (TTM) ₹37.95 · Dividend yield 1.6% · Net margin 12.7% · Return on equity 10.4% · Return on assets (EBIT) 1.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 6% below its 52-week high and 88% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −36% fair-value upside, at −9%, KTKBANK screens cheaper than that median.
Fair Value models
Bear ₹278.29Fair Value ₹293.13Bull ₹331.87
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 (₹16.70 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.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.57/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+0.4%
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.
+7.9%
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.
+6.4%
Start year 2021 (pandemic). Over 10 years: +6.5% 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.
+11.4%
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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.
+19.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.5%
Dividend (yield on the price)1.6%
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.17.5% vs 7.0%, 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.8% → 16%
Start year 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more 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).
+18.7%
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 +13.9% a year for the price.
Compare The Karnataka Bank Limited with another stock
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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 · 1056 stocks
Beats the industry median on 9/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score38 · Bottom 25%
Fair Value upside−8.9% · Above median
Profitability
Return on equity (TTM)10.4% · Above median
Return on assets1.1% · Above median
Net margin (TTM)40.9% · Top 25%
Operating margin (TTM)45.6% · Above median
Growth and dividend
Revenue growth−1.7% · Bottom 25%
Dividend yield (TTM)1.6% · Bottom 25%
Balance sheet
Debt / equity0.15× · Below median
Valuation Multiplesvs Banks - Regional median · lower = cheaper
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Cite: Fair Value Calculator (2026). "The Karnataka Bank Limited Fair Value". https://www.fairvalue-calculator.com/stock/KTKBANK
Frequently asked questions
Is The Karnataka Bank Limited (KTKBANK) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of ₹293.13 versus a price of ₹321.60, about −9% upside (fairly valued).
What is the fair value of KTKBANK?
Our model-based fair value for The Karnataka Bank Limited is ₹293.13 (as of Oct 2, 2026), built from audited fundamentals. The current price: ₹321.60.
What is the quality score of KTKBANK?
The Karnataka Bank Limited has a Quality Score of 39/100. 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 The Karnataka Bank Limited (KTKBANK)?
Our model-based price target is the fair value of ₹293.13 (as of Oct 2, 2026) from 6 valuation models. Cautious scenario ₹278.29, optimistic scenario ₹331.87. It is a calculation from audited fundamentals, not an analyst target.
What is the The Karnataka Bank Limited stock forecast for 2026?
Our models put fair value at ₹293.13, about −9% upside versus a price of ₹321.60 (fairly valued). Cautious scenario ₹278.29, optimistic scenario ₹331.87. The calculation is refreshed regularly with new filings.
What is the revenue of The Karnataka Bank Limited (KTKBANK)?
The Karnataka Bank Limited reported trailing-twelve-month revenue of about ₹34.7B (latest available figure, as of Oct 2, 2026).
Does The Karnataka Bank Limited pay a dividend?
The Karnataka Bank Limited currently shows a dividend yield of about 1.55% relative to its recent price (as of Oct 2, 2026).
What growth is priced into The Karnataka Bank Limited (KTKBANK)?
For today's price to be fair in a discounted-cash-flow model, The Karnataka Bank Limited would have to grow free cash flow by +18.7 % per year for five years (discount rate 12.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +6.4 % per year. As of Oct 2, 2026.
What discount rate (WACC) does the fair value of KTKBANK use?
Our models discount The Karnataka Bank Limited at 12.4 %: a base by market capitalisation (small), damped by beta 0.30, 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 The Karnataka Bank Limited that is +18.7 % per year a year over ten years, using the same discount rate (12.4 %) and the same formula as our fair value.
How much growth has The Karnataka Bank Limited (KTKBANK) delivered so far?
Over the past 5 years revenue at The Karnataka Bank Limited grew +6.4 % a year. The price currently implies +18.7 % 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 The Karnataka Bank Limited (KTKBANK) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into The Karnataka Bank Limited (+18.7 % 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 The Karnataka Bank Limited (KTKBANK)?
The free-cash-flow yield on the price is 2.79 %: that much free cash flow The Karnataka Bank Limited produces per unit of market value. When it exceeds the discount rate of our models (12.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of The Karnataka Bank Limited (KTKBANK)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For The Karnataka Bank Limited it is ₹293.13 per share (as of Oct 2, 2026), against a price of ₹321.60. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is The Karnataka Bank Limited stock overvalued or undervalued in 2026?
As of Oct 2, 2026, KTKBANK trades above its calculated fair value: price ₹321.60, fair value ₹293.13, a gap of about −9% (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 KTKBANK?
No. The price is what the market pays today (₹321.60); the fair value is what the company's own numbers justify (₹293.13). For The Karnataka Bank Limited the two are ₹28.47 per share apart. That gap is exactly why we show both numbers side by side.
How much is The Karnataka Bank Limited worth?
The market values The Karnataka Bank Limited at about ₹122B (market capitalisation, as of Oct 2, 2026). Per share that is ₹321.60; our models calculate a fair value of ₹293.13 per share.
What do the bullish and bearish scenarios say about KTKBANK?
Our models span a range for The Karnataka Bank Limited: cautious scenario ₹278.29, base ₹293.13, optimistic ₹331.87 per share (as of Oct 2, 2026, price ₹321.60). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of KTKBANK?
The Karnataka Bank Limited trades at a price-to-earnings ratio of 8.5 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹293.13 is built from several models across several years. Other multiples: P/B 0.9, P/S 3.8, EV/EBITDA 3.6.
How solid is the balance sheet of The Karnataka Bank Limited (KTKBANK)?
Balance-sheet figures for The Karnataka Bank Limited (as of Oct 2, 2026): return on equity 10.4%, debt of 0.15 per unit of equity. They feed the Quality Score of 39/100, which measures business quality independently of the share price.
How far is KTKBANK from its 52-week high?
The Karnataka Bank Limited trades at ₹321.60, about 6% below its 52-week high of ₹343.05 and 88% above the low of ₹171.08 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹293.13 is for.
Which stocks are comparable to The Karnataka Bank Limited?
From the same area (Financial Services) we also value DBS Group, China Merchants Bank Co, UniCredit S.p.A, Mizuho Financial Group, 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 The Karnataka Bank Limited stock attractive at the current price?
The data as of Oct 2, 2026: price ₹321.60, calculated fair value ₹293.13 (−9%), Quality Score 39/100, 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 KTKBANK calculated?
We run The Karnataka Bank Limited 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 ₹293.13, 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 14.5 % above its aggregate fair value. The Karnataka Bank Limited 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 The Karnataka Bank Limited (KTKBANK)?
The closing price on Oct 1, 2026 was ₹321.60. Our model-based fair value is ₹293.13, about −9% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with The Karnataka Bank Limited right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. 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 The Karnataka Bank Limited (KTKBANK) come from?
Earnings per share at The Karnataka Bank Limited grew +9.0 % a year from 2015 to 2026. Broken into its drivers: revenue per share +3.2 %, EBIT margin +6.3 %, tax rate −0.6 %, residual (interest, one-offs) +0.0 %. 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 The Karnataka Bank Limited
How large is the market capitalisation of The Karnataka Bank Limited (KTKBANK)?
The market capitalisation of The Karnataka Bank Limited is ₹122B (≈ $1.3B). 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 The Karnataka Bank Limited (KTKBANK)?
The price-to-sales ratio of The Karnataka Bank Limited is 1.08 (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 The Karnataka Bank Limited (KTKBANK)?
Earnings per share at The Karnataka Bank Limited are ₹37.95 (price ÷ EPS = P/E 8.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of The Karnataka Bank Limited (KTKBANK)?
The dividend yield of The Karnataka Bank Limited is 1.6% (payout 13.2%). 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 The Karnataka Bank Limited (KTKBANK)?
The net margin of The Karnataka Bank Limited is 12.7% (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 The Karnataka Bank Limited (KTKBANK)?
The return on equity (ROE) of The Karnataka Bank Limited is 10.4% (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 The Karnataka Bank Limited (KTKBANK)?
On an EBIT basis the return on assets of The Karnataka Bank Limited is 1.2% (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 The Karnataka Bank Limited (KTKBANK)?
The operating margin of The Karnataka Bank Limited is 43.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at The Karnataka Bank Limited (KTKBANK)?
Revenue at The Karnataka Bank Limited is growing +26.1% versus a year earlier (3y avg +7.9%). 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 The Karnataka Bank Limited (KTKBANK)?
Earnings per share at The Karnataka Bank Limited are growing +43.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does The Karnataka Bank Limited (KTKBANK) hold?
The Karnataka Bank Limited holds more cash than debt, ₹24.1B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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