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Federal Bank Ltd. Stock Valuation

NSE:FEDERALBNK | BANKS

Share Price vs Book Value

10-year trend comparing market price with book value per share

FY 2016 - FY 2025

Federal Bank Ltd. Share Price vs Book Value — What It Means

Book Value Per Share (BVPS) represents the net asset value per share from the balance sheet — what shareholders would theoretically receive per share on liquidation. When Federal Bank Ltd.'s share price trades above book value (P/B > 1), the market is pricing in growth, earnings power, or intangible assets beyond what the balance sheet shows. A P/B below 1 may signal undervaluation or fundamental concerns. Compare the gap between share price and BVPS over time to assess whether the stock is trading at a premium or discount.

Market Metrics

Key market metrics for Federal Bank Ltd. (FEDERALBNK) listed on NSE. For banks sector companies, market capitalization and share price are primary valuation indicators that reflect investor confidence and the bank's franchise value.

Share Price
₹301.05
Jun 3, 2026
Market Cap
₹745.31B
2.48B shares

Stock Valuation Models for Federal Bank Ltd. (FEDERALBNK)

We analyze Federal Bank Ltd. using multiple valuation models appropriate for BANKS companies. For BANKS companies, we use P/E Ratio Analysis, P/B Ratio Valuation, Dividend Discount Model (DDM), and EPS Growth Valuation to estimate the intrinsic value of Federal Bank Ltd. stock.

Current PE Ratio & Historical PE Ratio - Federal Bank Ltd.

10-year Price-to-Earnings ratio trend

Apr 2016 - Jun 2026

P/E Ratio Analysis

Potentially Overvalued

Current P/E Ratio

17.92

Jun 03, 2026

5-Year Median P/E

11.51

5-Year Historical Median

Difference

6.41

55.7%

Analysis: Federal Bank Ltd.'s current P/E ratio is 55.7% above its 5-year median, suggesting the stock may be overvalued relative to its historical earnings performance.

What Does Federal Bank Ltd.'s PE Ratio Tell Investors?

The P/E ratio measures how much investors pay for each rupee of earnings (Share Price / EPS). A higher PE suggests the market expects strong future growth, while a lower PE may indicate undervaluation or slower growth prospects. Compare Federal Bank Ltd.'s current PE against its historical median and BANKS peers to gauge whether the stock is trading at a premium or discount relative to its earnings.

Price-to-Book (P/B) Ratio - Federal Bank Ltd.

10-year Price-to-Book ratio trend for bank valuation

Apr 2016 - Jun 2026

P/B Ratio Analysis

Potentially Overvalued

Current P/B Ratio

2.16

Jun 03, 2026

5-Year Median P/B

1.41

5-Year Historical Median

Difference

0.75

53.2%

Analysis: Federal Bank Ltd.'s current P/B ratio is 53.2% above its 5-year median, suggesting the stock may be overvalued relative to its book value.

Why P/B Ratio Matters for Federal Bank Ltd.

The P/B ratio (Share Price / Book Value Per Share) is especially important for banks because their assets are primarily financial instruments whose book value closely reflects economic value. A P/B above 1.0 means the market is pricing in franchise value and future earnings beyond net assets. A P/B below 1.0 may signal asset quality concerns or subdued growth expectations. Compare Federal Bank Ltd.'s P/B against peer banks and its own historical median for context.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2025