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HDFC BankHDB -0.38%40 Forward PE Ratio is 20.99 as of Jul. 13, 2026. GuruFocus rates HDB with a GF Score™ of 40/100 and a GF Value™ of $31.60 (Modestly Undervalued). Among 817 Banks companies, HDFC Bank ranks worse than 81.88% on this metric.
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
HDFC Bank Forward PE Ratio Related Terms
HDFC Bank Forward PE Ratio Historical Data
* Premium members only.
The historical data trend for HDFC Bank's Forward PE Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HDFC Bank Forward PE Ratio Chart
HDFC Bank Annual Data
Trend
2016-03
2017-03
2018-03
2019-03
2020-03
2021-03
2022-03
2024-03
2025-03
Forward PE Ratio
21.55
22.68
25.00
28.25
16.03
30.03
20.53
16.64
24.43
HDFC Bank Semi-Annual Data
2016-03
2016-09
2017-03
2017-09
2018-03
2018-09
2019-03
2019-09
2020-03
2020-09
2021-03
2021-09
2022-03
2024-03
2025-03
Forward PE Ratio
21.55
27.32
22.68
29.15
25.00
28.09
28.25
28.01
16.03
28.01
30.03
27.40
20.53
16.64
24.43
HDB vs PNC, USB: Forward PE Ratio Comparison
For the Banks - Regional subindustry, HDFC Bank's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HDFC Bank Forward PE Ratio vs Banks Industry
For the Banks industry and Financial Services sector, HDFC Bank's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where HDFC Bank's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
HDFC Bank (HDB) has a Forward PE Ratio of 20.99 as of Jul. 13, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on HDFC Bank and its competitors. According to the industry distribution chart, HDFC Bank ranks #669 out of 817 companies in the Banks industry, placing it in the top 81.9%.
Is HDFC Bank's Forward PE Ratio too high?
HDFC Bank's current Forward PE Ratio is 20.99. The Banks industry median Forward PE Ratio is 11.08. HDFC Bank's value of 20.99 is 89.4% above this industry median. Based on the distribution chart, HDFC Bank ranks #669 out of 817 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, HDFC Bank has a GF Score™ of 40/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HDFC Bank's Forward PE Ratio compare to PNC and USB?
According to the Banks industry distribution chart, HDFC Bank ranks #669 out of 817 companies for Forward PE Ratio. This places HDFC Bank in the lower half of its industry. The industry median Forward PE Ratio is 11.08. HDFC Bank's value of 20.99 is 89.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for a Banks company?
The median Forward PE Ratio among Banks companies is 11.08, based on 817 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HDFC Bank's current Forward PE Ratio of 20.99 is 89.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on HDFC Bank and its competitors. For the Banks industry, the median Forward PE Ratio is 11.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDFC Bank's current Forward PE Ratio is 20.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HDFC Bank stock overvalued right now?
Based on GuruFocus' analysis, HDFC Bank (HDB) is currently considered Modestly Undervalued. The stock's GF Value™ is $31.60, compared to a current price of $26.41 — trading 16.4% below its estimated fair value. The current Forward PE Ratio is 20.99 and 89.4% above the Banks industry median of 11.08. HDFC Bank's overall GF Score™ is 40/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For HDFC Bank (HDB), the current Forward PE Ratio is 20.99 as of Jul. 13, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HDFC Bank (HDB) Overvalued in 2026?
Based on GuruFocus' analysis, HDFC Bank stock appears to be undervalued.
The current stock price of $26.41 is trading 16.4% below its estimated GF Value™ of $31.60.
GuruFocus considers HDFC Bank to be Modestly Undervalued.
Key valuation signals for HDB:
Forward PE Ratio: 20.99
GF Value™: $31.60 vs. price of $26.41 (16.4% below fair value)
Industry Position: 89.4% above the Banks median (#669 of 817)
No single metric tells the full story. See the HDB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HDFC Bank Ltd is an Indian bank. It operates in the following segments: Treasury, Retail banking, Wholesale banking, and Other banking business. The maximum revenue for the company is generated from its Retail banking segment, which serves retail customers through its branch network and other channels. This segment raises customer deposits and provides loans and other services to customers using different product groups. Its other operations include providing wholesale banking services to corporates, government entities, and other enterprises, generating income from its treasury operations, and performing para-banking activities such as offering credit cards, debit cards, etc. Geographically, the company generates a majority of its revenue from its operations in India.
40GF Score
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