HDFC Bank Ltd ADR (HDB) is slightly overvalued and ICICI Bank Ltd ADR (IBN) is slightly overvalued.
Both trade above our estimate of their intrinsic value. HDB is the closer of the two: -6%, against -16% for IBN.
Values as of the 22 Sept 2026 close.
Book value at 1.90x, the multiple a 13.7% return on equity justifies, blended with earnings, values the shares at $22.06; the price of $23.41 is 6% above that value.
Leak Score 14/100 on 3 of 12 signals
Book value at 2.50x, the multiple a 15.7% return on equity justifies, blended with earnings, values the shares at $24.21; the price of $28.04 is 16% above that value.
Leak Score 27/100 on 3 of 12 signals
| Metric | HDB | IBN |
|---|---|---|
| Verdict | Slightly overvalued | Slightly overvalued |
| Price | $23.41 | $28.04 |
| Intrinsic value | $22.06 | $24.21 |
| Margin of safety | -6% | -16% |
| Leak Score | 14/100 (3/12) | 27/100 (3/12) |
| Market cap | $120.3B | $100.6B |
| Revenue growth, 5 years | 21.8% | 10.3% |
| Operating margin | 21.9% | 24.8% |
| Net margin | 16.0% | 17.7% |
| Return on equity | 13.7% | 15.7% |
| Debt to equity | 0.93 | 0.59 |
| P/E | 13.8x | 16.4x |
| Forward P/E | 12.1x | 14.4x |
| P/B | 1.9x | 2.5x |
| Dividend yield | 1.8% | 1.0% |