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Union Bank of India (UNIONBANK) Fair Value & Analysis

Financial Services · IN · Market cap ₹1.3T

UB Union Bank of India UNIONBANK · NSE
Price₹183.45
Fair Value₹244.21
Upside+33.1%
Quality29/100
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Strengths

Trades 25% below our fair value of ₹244.21
Highly profitable · 39.7% net margin
Low debt · generates free cash flow
Ranks above peers (12/13)

Risks

!Expensive Growth (revenue 5y +8.7 %/yr)
!Moderate moat 60/100
Expensive Growth (revenue 5y +8.7 %/yr)
Highly profitable · 39.7% net margin
Low debt · generates free cash flow
3.00% dividend yield
Ranks above peers (12/13)
Moderate moat 60/100
Evidence: High Range ₹183.16 – ₹305.27 Share as image

Fair value as of: Aug 22, 2026

From 6 valuation models · updated 2 days ago

Share price +7.5% over the past month.

Below-average quality, screening 33% undervalued on our models.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The large discount to fair value meets weak quality (29/100). That raises the risk this is a value trap rather than a bargain.
  • 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)

₹196.49 ₹27.69 Fair Value ₹244.21 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 22, 2026.

How to read this chart

60‑month range ₹27.69 – ₹196.49 · fair‑value band ₹183.16 – ₹305.27 · the ₹183.45 price screens below the ₹244.21 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 22, 2026.

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Analysis

Union Bank of India (UNIONBANK) currently trades at ₹183.45, while our model-based Fair Value estimate is ₹244.21, implying the stock looks roughly 33.1% undervalued today. The Quality Score stands at 29/100 (below-average 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, Union Bank of India generated revenue of ₹545B at a net margin of 35.7%. Revenue grew 15.8% year over year. It earns a return on equity of 15.7%. The balance sheet holds a net cash position of ₹182B. Fundamentals as of Aug 22, 2026

Our scenario range runs from ₹183.16 (bear case) to ₹305.27 (bull case); at ₹183.45, the current price sits within 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 11% below its 52-week high and 47% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 46% fair-value upside, at 33%, UNIONBANK screens richer 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 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 ₹176.88 ₹237.25 ₹737.78 76
Gordon GGM ₹45.69 ₹99.75 ₹167.83 70
P/E Multiple ₹248.17 ₹330.90 ₹413.62 63
All 6 models by family
Dividend Discount
Gordon GGM ₹45.69 ₹99.75 ₹167.83 70
DDM Multi-Stage ₹45.69 ₹81.71 ₹103.96 61
Multiples
P/E Multiple ₹248.17 ₹330.90 ₹413.62 63
P/B Multiple ₹183.56 ₹244.74 ₹305.93 55
Asset-Based
NCAV (Graham) ₹87.41 ₹117.13 ₹174.82 50
Economic Profit
Residual Income ₹176.88 ₹237.25 ₹737.78 76

Widest divergence: Multiples (₹244.74) versus Dividend Discount (₹81.71). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 7.2
P/S ratio 2.34 TTM
Dividend yield 3.0% payout 21.6%
Net margin 35.7% TTM
Return on equity 15.7% TTM
Return on assets 1.3% TTM
More key figures
Profitability
Operating margin -888% TTM
EPS (TTM) ₹25.45
Growth
Revenue (TTM) ₹545B TTM
Revenue growth (YoY) +15.8% 3y avg +9.9%
EPS growth (YoY) +9.7%
Balance sheet & cash flow
Free cash flow ₹39.8B FY2026
Net cash ₹182B FY2026

Figures from reported company fundamentals · as of Aug 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 29/100

Of which business quality 28 · Market factors (momentum, volatility) 65

Profitability 31
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 23
Earnings quality: real cash, not paper profit
Fin. Strength 20
Balance sheet, leverage, solvency risk
Investment 55
Disciplined investing over empire-building
Low Volatility 66
Calm price path (market factor)
Momentum 57
Price trend over the last 3–12 months (market factor)
52W Momentum 79
Distance to the 52-week high (market factor)
Net Issuance 8
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

Union Bank of India provides banking products and services in India. It operates in four segments: Treasury Operations, Retail Banking Operations, Corporate and Wholesale Banking, and Other Banking Operations. The company provides its products and services to individuals, commercial enterprises, large corporates, public bodies, and institutional customers.

Full company description

Union Bank of India provides banking products and services in India. It operates in four segments: Treasury Operations, Retail Banking Operations, Corporate and Wholesale Banking, and Other Banking Operations. The company provides its products and services to individuals, commercial enterprises, large corporates, public bodies, and institutional customers. Union Bank of India was incorporated in 1919 and is headquartered in Mumbai, India.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Union Bank of India reported revenue of ₹1.3T in FY2026 versus ₹818B in FY2022, a compound +11.5%/yr. Reported net income was ₹194B in FY2026, compounding +38.6%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹1.3T
Latest YoY
−2.8%
Avg. 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.
+9.9%
Avg. 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.
+8.7%
Avg. growth/yr (21Y) 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.
+15.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+31.0% (31.0 + 0.0)
Revenue +11.5%/yr
FY22 ₹818B
FY23 ₹952B
FY24 ₹1.2T
FY25 ₹1.3T
FY26 ₹1.3T
Net income +38.6%/yr
FY22 ₹52.7B
FY23 ₹85.1B
FY24 ₹138B
FY25 ₹180B
FY26 ₹194B
Character of growth · EPS growth decomposed (2015-2026) +19.0 % p.a.
Revenue per share +1.7 pp

of which total revenue +14.5 pp · buybacks/dilution −12.8 pp

EBIT margin +21.1 pp
Tax rate −3.4 pp
Residual (interest, one-offs) −0.4 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Union Bank of India Fair Value". https://www.fairvalue-calculator.com/stock/UNIONBANK

Peer Group

Banks - Regional · 1091 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 29 · Bottom 25%
Fair Value upside +33% · Above median
Return on equity (TTM) 16% · Top 25%
Return on assets 1% · Above median
Net margin (TTM) 40% · Top 25%
Revenue growth 16% · Above median
Dividend yield (TTM) 2.7% · Above median
Debt / equity 0.21× · Lower than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 7.2× · Cheaper than 75% of peers
P/B 0.96× · Cheaper than median
P/S (TTM) 2.63× · Cheaper than median
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 2.4× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE77 · sector 34
FUTURE79 · sector 44
PAST63 · sector 41
HEALTH90 · sector 85
DIVIDEND55 · sector 51

Insider activity: 40/100

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 22, 2026).

Stock Price Fair Value vs Fair Value
PT Bank Central Asia Tbk BBCA 6,350 IDR 4,637 IDR -27%
KB Financial Group 105560 168,100 KRW 220,258 KRW +31%
PT Bank Rakyat Indonesia (Persero) Tbk BBRI 3,110 IDR 3,792 IDR +22%
PT Bank Mandiri (Persero) Tbk BMRI 4,150 IDR 6,067 IDR +46%
Banco Bradesco S.A BBD 5,120 ARS 8,400 ARS +64%
Shinhan Financial Group 055550 103,800 KRW 146,032 KRW +41%
Hana Financial Group 086790 127,900 KRW 210,506 KRW +65%
Lloyds Banking Group LYG 4,138 ARS 8,275 ARS +100%
Joint Stock Commercial Bank for Foreign Trade of Vietnam, VCB 59,500 VND 45,959 VND -23%
Woori Financial Group 316140 33,000 KRW 60,758 KRW +84%

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Frequently asked questions

Is Union Bank of India (UNIONBANK) overvalued or undervalued?
As of Aug 22, 2026, our model estimates a fair value of ₹244.21 versus a price of ₹183.45, about +33% (undervalued).
What is the fair value of UNIONBANK?
Our model-based fair value for Union Bank of India is ₹244.21 (as of Aug 22, 2026), built from audited fundamentals. The current price: ₹183.45.
What is the quality score of UNIONBANK?
Union Bank of India has a Quality Score of 29/100. 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 revenue of Union Bank of India (UNIONBANK)?
Union Bank of India reported trailing-twelve-month revenue of about ₹545B (latest available figure, as of Aug 22, 2026).
What is the net profit margin of UNIONBANK?
The net profit margin of Union Bank of India is about 35.7%, meaning it keeps roughly 35.7% of revenue as net income. Based on the latest reported figures.
Does Union Bank of India pay a dividend?
Union Bank of India currently shows a dividend yield of about 3.00% relative to its recent price (as of Aug 22, 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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