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HDFC BankHDB -0.38%40 Peter Lynch Fair Value is $33.36 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 875 Banks companies, HDFC Bank ranks worse than 114285.6% on this metric.
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, HDFC Bank's PEG is 1. HDFC Bank's 5-Year TTM Book Value Growth Rate is 21.47.
HDFC Bank's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2025 was $1.55. Therefore, the Peter Lynch Fair Value for today is $33.36.
As of today (2026-07-13), HDFC Bank's share price is $26.41. HDFC Bank's Peter Lynch fair value is $33.36. Therefore, HDFC Bank's Price to Peter Lynch Fair Value Ratio for today is 0.79.
The historical rank and industry rank for HDFC Bank's Peter Lynch Fair Value or its related term are showing as below:
HDB's Price-to-Peter-Lynch-Fair-Value is not ranked *
in the Banks industry.
Industry Median: 1.12 * Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
HDFC Bank (NYSE:HDB) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of Book Value per share over the past 5 years, which is 21.47 instead of 15 in this case.
HDFC Bank's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
26.41
/
33.36
=
0.79
* 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 Peter Lynch Fair Value Related Terms
HDFC Bank Peter Lynch Fair Value Historical Data
* Premium members only.
The historical data trend for HDFC Bank's Peter Lynch Fair Value 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.
HDB vs PNC, USB: Peter Lynch Fair Value Comparison
For the Banks - Regional subindustry, HDFC Bank's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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 Price-to-Peter-Lynch-Fair-Value vs Banks Industry
For the Banks industry and Financial Services sector, HDFC Bank's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where HDFC Bank's Price-to-Peter-Lynch-Fair-Value falls into.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. HDFC Bank's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2025 was $1.55.
* 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.
** Please be aware that the 5-Year TTM Book Value Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data is the latest quarter data. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
What does a Peter Lynch Fair Value of $33.36 mean?
HDFC Bank (HDB) has a Peter Lynch Fair Value of $33.36 as of Jul. 13, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on HDFC Bank and its competitors. According to the industry distribution chart, HDFC Bank ranks #999999 out of 875 companies in the Banks industry.
Is HDFC Bank's Peter Lynch Fair Value too high?
HDFC Bank's current Peter Lynch Fair Value is $33.36. The Banks industry median Peter Lynch Fair Value is 1.12. HDFC Bank's value of $33.36 is 2878.6% above this industry median. Based on the distribution chart, HDFC Bank ranks #999999 out of 875 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 Peter Lynch Fair Value compare to PNC and USB?
According to the Banks industry distribution chart, HDFC Bank ranks #999999 out of 875 companies for Peter Lynch Fair Value. This places HDFC Bank in the lower half of its industry. The industry median Peter Lynch Fair Value is 1.12. HDFC Bank's value of $33.36 is 2878.6% 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 Peter Lynch Fair Value for a Banks company?
The median Peter Lynch Fair Value among Banks companies is 1.12, based on 875 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. HDFC Bank's current Peter Lynch Fair Value of $33.36 is 2878.6% 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 Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on HDFC Bank and its competitors. For the Banks industry, the median Peter Lynch Fair Value is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDFC Bank's current Peter Lynch Fair Value is $33.36. 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 Peter Lynch Fair Value is $33.36 and 2878.6% above the Banks industry median of 1.12. 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 Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For HDFC Bank (HDB), the current Peter Lynch Fair Value is $33.36 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:
Peter Lynch Fair Value: $33.36
GF Value™: $31.60 vs. price of $26.41 (16.4% below fair value)
Industry Position: 2878.6% above the Banks median (#999999 of 875)
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.
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