Stock fact sheet · data as of
HDFC Bank Limited (HDB): fair value, margin of safety and Wheel Score
Ticker symbol HDB · Financial Services · Banks - Regional · India · ADR · Growth Quality
HDB is an American depositary share (ADR): the US listing of HDFC Bank Limited, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.
Is HDB undervalued?
HDB has a margin of safety of 59%: the stock closed at 24.33 on 5 Nov 2026 against a GLS average fair value of 59.81. 6 of the 9 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 9 models disagree widely: DDM gives 7.26 while Payback Time gives 140.81. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, HDB is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 59, growth score 84, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
Nine valuation models for HDB
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 64.70 | +166% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 21.15 | -13% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 71.36 | +193% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 29.37 | +21% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 102.63 | +322% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 82.36 | +239% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 140.81 | +479% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 7.26 | -70% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 18.63 | -23% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -80.68 | -432% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health HDB scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 8.8 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are moderate - ROIC 6.9%, ROE 13.9%, ROA 1.7% - with debt at 1.00 times equity and negative free cash flow.
The dividend yield is 2.03% at a payout ratio of 0%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Retail Banking 95%, Treasury Services 6% (quarter Q4 FY2012).
Institutional ownership scores 5/10, insider activity 8/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 6.9% |
|---|---|---|---|
| GLS Moat | 8.8 / 10 | ROE | 13.9% |
| Debt / equity | 1.00 | ROA | 1.7% |
| Free-cash-flow yield | 0.0% | Payout ratio | 0% |
| Institutions | 5 / 10 | Insiders · Congress | 8 · 5 / 10 |
Wheel Score 91: Prime
HDB scores 91 out of 100 on the Wheel Score, in the Prime band (85 and above): it passes all 9 Wheel Trade Filters and ranks strongly on value strong, premium strong, moat strong, health good, red flags strong, option trading fair, stability strong. Prime stocks stand out among those that pass - the Sunday Scan is the top 10 by Wheel Score.
Implied volatility is 36% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 15,468 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 14.3M shares a day on a market cap of $124.8B, with a beta of 0.42 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 59% below fair value | |
| Premium | Strong | implied volatility 36% | |
| Moat | Strong | moat 8.8/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Strong | Red Flags score 92/100 | |
| Option trading | Fair | 1,082 contracts a day, 15,468 open interest | |
| Stability | Strong | beta 0.42, $124.8B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 15 Jan 2027, 71 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to HDFC Bank Limited by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| MFG Mizuho Financial Group, Inc. | 9.80 | 9.23 | -6% | 37Weak | $118.5B |
| IBN ICICI Bank Limited | 31.26 | 40.56 | +23% | 46Weak | $112.2B |
| USB U.S. Bancorp | 61.03 | 60.45 | -1% | 48Weak | $95.1B |
| PNC The PNC Financial Services Group, Inc. | 233.45 | 161.88 | -44% | 40Weak | $92.7B |
| LYG Lloyds Banking Group plc | 5.27 | 9.92 | +47% | 47Weak | $77.2B |
| DB Deutsche Bank AG | 36.73 | 76.89 | +52% | 51Fair | $68.1B |
| TFC Truist Financial Corporation | 50.87 | 92.14 | +45% | 77Good | $61.0B |
| NU Nu Holdings Ltd. | 11.99 | 22.62 | +47% | 53Fair | $57.9B |
| FITB Fifth Third Bancorp | 54.72 | 69.09 | +21% | 80Good | $49.6B |
| KB KB Financial Group Inc. | 114.98 | 238.31 | +52% | 49Weak | $40.6B |
| BSBR Banco Santander (Brasil) S.A. | 4.76 | 8.85 | +46% | 37Weak | $35.6B |
| HBANL Huntington Bancshares Incorporated | 24.69 | 21.93 | -13% | 23No options | $34.1B |
⚖ Compare HDB with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about HDB
Is HDB undervalued right now?
By the GLS models, yes: at 24.33 the stock is 59% below the average fair value of 59.81 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of HDB and what does it mean?
HDB scores 91 out of 100 (Prime). The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for HDB?
59.81 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does HDFC Bank Limited report earnings next?
The next earnings report is due on 15 Jan 2027, 71 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does HDB have listed options, and how liquid are they?
Yes. The nightly snapshot found 42 listed contracts with 15,468 open interest across all expiries and implied volatility of 36% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.
Is HDB an ADR?
Yes. HDB is an American depositary share (ADR): the US listing of HDFC Bank Limited, whose own shares trade on its home exchange. It trades in dollars during US hours; currency moves and the home country's rules also affect it, and the depositary bank charges a small yearly fee.