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Punjab National Bank (PNB) Fair Value & Analysis

Financial Services · IN · Market cap ₹1.2T

PN Punjab National Bank PNB · NSE
Price₹114.30
Fair Value₹208.05
Upside+82.0%
Quality51/100
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Healthy Growth
Highly profitable · 31.2% net margin
Moderate debt · generates free cash flow
2.84% dividend yield
Ranks above peers (10/14)
Moderate moat 53/100
Evidence: High Range ₹156.03 – ₹260.06 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 20 days ago

Share price +10.1% over the past month.

A solid business, screening 82% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (₹156.03). The market is more pessimistic than our downside scenario.
  • Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
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Price vs Fair Value (5 years)

₹131.65 ₹25.65 Fair Value ₹208.05 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ₹25.65 – ₹131.65 · fair‑value band ₹156.03 – ₹260.06 · the ₹114.30 price screens below the ₹208.05 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

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Analysis

Punjab National Bank (PNB) currently trades at ₹114.30, while our model-based Fair Value estimate is ₹208.05, implying the stock looks roughly 82.0% undervalued today. We read business quality at 51/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Punjab National Bank generated revenue of ₹589B at a net margin of 31.2%. Revenue grew 15.2% year over year. It earns a return on equity of 13.0%. The balance sheet holds a net cash position of ₹566B. Fundamentals as of Jul 18, 2026

Our scenario range runs from ₹156.03 (bear case) to ₹260.06 (bull case); at ₹114.30, the current price sits below 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 15% below its 52-week high and 16% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at 82%, PNB screens cheaper 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 BearBaseBull Evidence
Highest evidence
Growth DCF ₹332.27 ₹564.44 ₹986.93 80
Residual Income ₹123.51 ₹152.40 ₹372.19 76
Rev-Margin DCF ₹292.96 ₹473.13 ₹708.11 74
All 26 models by family
DCF Models
FCF DCF ₹334.09 ₹584.66 ₹1,046 38
Owner Earnings ₹267.24 ₹458.70 ₹811.39 31
5Y Revenue Exit ₹292.96 ₹477.91 ₹730.09 39
5Y EBITDA Exit ₹299.98 ₹492.50 ₹734.42 41
5Y P/E Exit ₹292.10 ₹476.13 ₹687.10 38
10Y Revenue Exit ₹296.16 ₹480.04 ₹764.46 36
10Y EBITDA Exit ₹309.09 ₹491.03 ₹768.20 37
10Y P/E Exit ₹303.74 ₹478.70 ₹727.32 35
Earnings-Based
Graham-Dodd ₹108.82 ₹519.51 ₹714.89 54
Lynch FV ₹138.35 ₹197.64 ₹256.94 50
PEG = 1.0 ₹138.35 ₹197.64 ₹256.94 46
EPV ₹211.42 ₹239.77 ₹264.98 59
Dividend Discount
Gordon GGM ₹27.83 ₹60.75 ₹102.22 70
DDM Multi-Stage ₹27.83 ₹49.77 ₹63.31 61
Multiples
P/E Multiple ₹240.05 ₹320.07 ₹400.09 63
P/S Multiple ₹204.04 ₹272.06 ₹340.07 58
P/B Multiple ₹204.04 ₹272.06 ₹340.07 55
EV/EBIT ₹384.95 ₹496.36 ₹607.76 53
EV/EBITDA ₹302.99 ₹387.07 ₹471.15 54
EV/Revenue ₹276.03 ₹372.58 ₹469.13 43
Asset-Based
NCAV (Graham) ₹65.25 ₹87.43 ₹130.49 50
Growth DCF
Growth DCF ₹332.27 ₹564.44 ₹986.93 80
Rev-Margin DCF ₹292.96 ₹473.13 ₹708.11 74
Economic Profit
Residual Income ₹123.51 ₹152.40 ₹372.19 76
ROIC Compounder ₹236.22 ₹307.07 ₹402.37 72
Growth Earnings
Growth-Adj P/E ₹211.37 ₹301.95 ₹392.54 68

Widest divergence: DCF Models (₹478.70) versus Dividend Discount (₹49.77). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹589B
Revenue growth (YoY) +15.2%
Net margin 31.2%
Return on equity 13.0%
Free cash flow ₹236B FY2026
P/E ratio 6.6
More key figures
Operating margin 29.4%
EPS (TTM) ₹15.93
Dividend yield 2.8%
EPS growth (YoY) +1.9%
Net cash ₹566B FY2026

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 47 · Market factors (momentum, volatility) 57

Profitability 27
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 72
Earnings quality: real cash, not paper profit
Fin. Strength 27
Balance sheet, leverage, solvency risk
Investment 60
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 50
Distance to the 52-week high (market factor)
Net Issuance 64
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

Punjab National Bank provides various banking and financial products and services in India and internationally. The company operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments.

Full company description

Punjab National Bank provides various banking and financial products and services in India and internationally. The company operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. The company offers personal banking products and services, including saving fund accounts, current accounts, fixed deposit, and capital gain account and gold monetization schemes; and housing, vehicle, education, personal, gold, and mortgage and other loans. It also provides various micro, small, and medium enterprises schemes and loans; banking products for government customers; agricultural schemes and loans; corporate banking products and services consist of loans against future lease rentals, working capital financing, and term loans; EXIM finance and cash management services, as well as gold card schemes for exporters; and international banking products and services. In addition, the company offers life and general insurance services; depository, mutual funds, merchant banking, and application supported by blocked amount services; and NRI banking and services. Further, the company provides mobile and internet banking, UPI, SMS banking, missed call, e-statement, ATM, passbook updating machine, and electronic cheque deposit machine services; and point of sale (PoS) is the payment acceptance solutions, NFC-enabled terminals facilitating quick payments, as well as debit and credit cards. Punjab National Bank was incorporated in 1894 and is headquartered in New Delhi, India.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Punjab National Bank reported revenue of ₹1.5T in FY2026 versus ₹880B in FY2022, a compound +14.4%/yr. Reported net income was ₹184B in FY2026, compounding +47.7%/yr from FY2022.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹1.5T
Latest YoY
+7.3%
Avg. growth/yr (3Y)
+15.1%
Avg. growth/yr (5Y)
+9.8%
Avg. growth/yr (21Y)
+13.7%
Revenue +14.4%/yr
FY22 ₹880B
FY23 ₹989B
FY24 ₹1.2T
FY25 ₹1.4T
FY26 ₹1.5T
Net income +47.7%/yr
FY22 ₹38.6B
FY23 ₹33.5B
FY24 ₹91.1B
FY25 ₹185B
FY26 ₹184B

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Cite: Fair Value Calculator (2026). "Punjab National Bank Fair Value". https://www.fairvalue-calculator.com/stock/PNB

Peer Group

Banks - Regional · 1082 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 52 · Bottom 25%
Fair Value upside +82% · Top 25%
Return on equity (TTM) 13% · Above median
Return on assets 1% · Below median
Net margin (TTM) 31% · Above median
Operating margin (TTM) 29% · Below median
Revenue growth 15% · Above median
Dividend yield (TTM) 2.8% · Above median
Debt / equity 0.71× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 6.6× · Cheaper than 75% of peers
P/B 0.81× · Cheaper than median
P/S (TTM) 2.05× · Cheaper than 75% of peers
P/FCF 0.1× · Cheaper than 75% of peers
EV/EBITDA 2.2× · Cheaper than 75% of peers

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.

VALUE 100 · sector 39
FUTURE 76 · sector 44
PAST 52 · sector 41
HEALTH 65 · sector 85
DIVIDEND 57 · sector 49

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 Jul 18, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,175 IDR 6,087 IDR -1%
KB Financial Group 105560 184,400 KRW 213,797 KRW +16%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 2,970 IDR 4,891 IDR +65%
PT Bank Mandiri (Persero) Tbk BMRI 4,310 IDR 7,841 IDR +82%
Banco Bradesco S.A BBD 5,120 ARS 10,240 ARS +100%
Shinhan Financial Group 055550 107,900 KRW 137,259 KRW +27%
Hana Financial Group 086790 136,800 KRW 193,969 KRW +42%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Banco de Chile, CHILE 193.10 CLP 152.55 CLP -21%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,400 VND 84,201 VND +42%

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Frequently asked questions

Is Punjab National Bank (PNB) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ₹208.05 versus a price of ₹114.30, about +82% (undervalued).
What is the fair value of PNB?
Our model-based fair value for Punjab National Bank is ₹208.05 (as of Jul 18, 2026), built from audited fundamentals. The current price is ₹114.30.
What is the quality score of PNB?
Punjab National Bank has a Quality Score of 51/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Punjab National Bank (PNB)?
Punjab National Bank reported trailing-twelve-month revenue of about ₹589B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of PNB?
The net profit margin of Punjab National Bank is about 31.2%, meaning it keeps roughly 31.2% of revenue as net income. Based on the latest reported figures.
Does Punjab National Bank pay a dividend?
Punjab National Bank currently shows a dividend yield of about 2.84% relative to its recent price (as of Jul 18, 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.

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