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The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2026-09-14), HDFC Bank's 3-Year Sortino Ratio is -0.54.
HDFC Bank (NYSE:HDB) 3-Year Sortino Ratio Explanation
The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
HDFC Bank 3-Year Sortino Ratio Related Terms
HDB vs USB: 3-Year Sortino Ratio Comparison
For the Banks - Regional subindustry, HDFC Bank's 3-Year Sortino Ratio, along with its competitors' market caps and 3-Year Sortino 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 3-Year Sortino Ratio vs Banks Industry
For the Banks industry and Financial Services sector, HDFC Bank's 3-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where HDFC Bank's 3-Year Sortino Ratio falls into.
The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past three year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
HDFC Bank (HDB) has a 3-Year Sortino Ratio of -0.54 as of Sep. 14, 2026. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for HDFC Bank and its competitors.
Is HDFC Bank's 3-Year Sortino Ratio too high?
HDFC Bank's current 3-Year Sortino Ratio is -0.54. Overall, HDFC Bank has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HDFC Bank's 3-Year Sortino Ratio compare to USB?
HDFC Bank's 3-Year Sortino Ratio of -0.54 can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Sortino Ratio for a Banks company?
A good 3-Year Sortino Ratio depends on the Banks industry context. However, 3-Year Sortino Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Sortino Ratio mean?
A high 3-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for HDFC Bank and its competitors. HDFC Bank's current 3-Year Sortino Ratio is -0.54. 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 $30.98, compared to a current price of $23.12 — trading 25.4% below its estimated fair value. The current 3-Year Sortino Ratio is -0.54. HDFC Bank's overall GF Score™ is 60/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Sortino Ratio calculated?
3-Year Sortino Ratio is calculated from a company's financial statements. For HDFC Bank (HDB), the current 3-Year Sortino Ratio is -0.54 as of Sep. 14, 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 $23.12 is trading 25.4% below its estimated GF Value™ of $30.98.
GuruFocus considers HDFC Bank to be Modestly Undervalued.
Key valuation signals for HDB:
3-Year Sortino Ratio: -0.54
GF Value™: $30.98 vs. price of $23.12 (25.4% below fair value)
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.
60GF Score
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