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Canara Bank (CANBK) Fair Value & Analysis

Financial Services · IN · Market cap ₹1.1T (≈ $12.2B) · ISIN INE476A01014

What is Canara Bank really worth?

CB Canara Bank CANBK · NSE
Price₹125.50
Fair Value₹232.03
Upside+84.9%
Quality29/100

Below-average quality, trading 46% below our fair value of ₹232.03.

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Strengths

Highly profitable · 37.0% net margin

Risks

!Expensive Growth (revenue 5y +10.4 %/yr)
!Moderate debt · negative free cash flow
!Mixed vs. peers (7/12)
!Moderate moat 45/100
!Evidence only medium, so the estimate is less certain

For context

·3.35% dividend yield
Evidence: Medium Range ₹174.03 – ₹290.04

Fair value as of: Sep 5, 2026

From 6 valuation models · updated today

Share price −2.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The large discount to fair value meets weak quality (29/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (₹174.03). The market is more pessimistic than our downside scenario.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

₹153.85 ₹24.25 Fair Value ₹232.03 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range ₹24.25 – ₹153.85 · fair‑value band ₹174.03 – ₹290.04 · the ₹125.50 price screens below the ₹232.03 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

Canara Bank (CANBK) currently trades at ₹125.50, while our model-based Fair Value estimate is ₹232.03, implying the stock looks roughly 45.9% undervalued today. The Quality Score stands at 29/100 (below-average quality), in the Financial Services sector. Bull case: the Economic Profit group reads highest at a median of ₹202.32 per share, and 3 of the 6 models we run sit above the ₹125.50 price. Bear case: the Dividend Discount group reads lowest at ₹68.81, and 3 of the 6 models stay below the price. Evidence for this calculation is medium.

Revenue declined 46.7% year over year. It earns a return on equity of 15.9%. The balance sheet holds a net cash position of ₹510B. The stock trades on a trailing P/E of 5.8. Fundamentals as of Sep 5, 2026

Our scenario range runs from ₹174.03 (bear case) to ₹290.04 (bull case); at ₹125.50, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 23% below its 52-week high and 21% above its 52-week low, currently below its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at 85%, CANBK screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹7.59 per share, which is 3.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
DDM Multi-Stage ₹38.48 ₹68.81 ₹87.54 66
Gordon GGM ₹38.48 ₹84.00 ₹141.33 65
Residual Income ₹150.12 ₹202.32 ₹772.56 64
All 6 models by family
Dividend Discount
Gordon GGM ₹38.48 ₹84.00 ₹141.33 65
DDM Multi-Stage ₹38.48 ₹68.81 ₹87.54 66
Multiples
P/E Multiple ₹211.82 ₹282.42 ₹353.03 63
P/B Multiple ₹136.25 ₹181.67 ₹227.09 55
Asset-Based
NCAV (Graham) ₹64.88 ₹86.94 ₹129.76 54
Economic Profit
Residual Income ₹150.12 ₹202.32 ₹772.56 64

Widest divergence: Economic Profit (₹202.32) versus Dividend Discount (₹68.81). Highest evidence: DDM Multi-Stage (66).

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Key figures & financial health

P/E ratio 5.8
P/S ratio 0.74 P/E × margin
EPS (TTM) ₹21.73 price ÷ EPS = P/E 5.8
Dividend yield 3.3% payout 19.3%
Net margin 12.9% FY2026
Return on equity 15.9% TTM
More key figures
Profitability
Return on assets (EBIT) 1.2% avg 5y
Operating margin −32.2% TTM
Growth
Revenue growth (YoY) −46.7% 3y avg +12.2%
EPS growth (YoY) −9.8%
Balance sheet & cash flow
Free cash flow −₹185B FY2026
Net cash ₹510B FY2026

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 29/100

Of which business quality 30 · Market factors (momentum, volatility) 58

Profitability 30
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 36
Balance sheet, leverage, solvency risk
Investment 57
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 51
Distance to the 52-week high (market factor)
Net Issuance 40
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Canara Bank provides various banking products and services in India and internationally. The company offers deposits and accounts, such as savings accounts, current accounts, recurring deposits, and term deposits; unclaimed deposits; loan products, including home, vehicle, education, personal, mortgage, gold, MSME, agri, and solar loans; life, general, and …

Full company description

Canara Bank provides various banking products and services in India and internationally. The company offers deposits and accounts, such as savings accounts, current accounts, recurring deposits, and term deposits; unclaimed deposits; loan products, including home, vehicle, education, personal, mortgage, gold, MSME, agri, and solar loans; life, general, and health insurance products; corporate loans comprising working capital, infrastructure, and export finance products, as well as term loans; depository services, merchant banking, and online trading services; and mutual funds. The company also provides digital lending portal; mobile and internet banking; credit, debit, and prepaid cards; UPI and fastag; missed call banking; online account opening services; and payment solutions; NRI banking accounts; remittance facilities; attorneyship service; and nomination facility. In addition, it offers supply chain finance management; syndication services; IPO monitoring services; locker services; doorstep banking services; and consultancy services, which includes estate and wills, private and charitable religious trustee, debenture and security trusteeship, and attorney services. Further, the company offers government business products. Canara Bank was incorporated in 1906 and is headquartered in Bengaluru, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Canara Bank reported revenue of ₹1.5T in FY2026 versus ₹928B in FY2022, a compound +13.3%/yr. Reported net income was ₹197B in FY2026, compounding +33.9%/yr from FY2022.

Growth Quality 54/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹1.5T
Latest YoY
−0.4%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.4%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.2%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−1.0% (−4.3 + 3.3)
Revenue +13.3%/yr
FY22 ₹928B
FY23 ₹1.1T
FY24 ₹1.4T
FY25 ₹1.5T
FY26 ₹1.5T
Net income +33.9%/yr
FY22 ₹61.2B
FY23 ₹113B
FY24 ₹153B
FY25 ₹175B
FY26 ₹197B
Character of growth · EPS growth decomposed (2015-2026) +19.2 % p.a.
Revenue per share +6.5 %

of which total revenue +13.1 % · buybacks/dilution −5.8 %

EBIT margin +13.6 %
Tax rate −0.5 %
Residual (interest, one-offs) −1.0 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Canara Bank Fair Value". https://www.fairvalue-calculator.com/stock/CANBK

Peer Group

Banks - Regional · 1071 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 32 · Bottom 25%
Fair Value upside +85% · Top 25%
Return on equity (TTM) 16% · Top 25%
Return on assets 1% · Below median
Net margin (TTM) 37% · Above median
Operating margin (TTM) −32% · Bottom 25%
Revenue growth −47% · Bottom 25%
Dividend yield (TTM) 3.3% · Above median
Debt / equity 0.76× · Higher than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 5.8× · Cheaper than 75% of peers
P/B 0.97× · Cheaper than median
P/S (TTM) 2.38× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 33
FUTURE0 · sector 45
PAST64 · sector 41
HEALTH62 · sector 85
DIVIDEND67 · sector 51

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.78 €5.66 −17%
HDFC Bank Limited HDB $23.17 $24.12 +4%
BNP Paribas SA BNP €102.56 €144.64 +41%
UniCredit S.p.A UCG €84.71 €77.62 −8%
Mizuho Financial Group MFG $10.74 $9.69 −10%
ICICI Bank Limited ICICIBANK ₹1,443 ₹835.21 −42%
Oversea-Chinese Banking Corporation O39 31.07 SGD 19.80 SGD −36%
CaixaBank, S.A CABK €13.52 €8.85 −35%

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Frequently asked questions

Is Canara Bank (CANBK) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of ₹232.03 versus a price of ₹125.50, about +85% upside (undervalued).
What is the fair value of CANBK?
Our model-based fair value for Canara Bank is ₹232.03 (as of Sep 5, 2026), built from audited fundamentals. The current price: ₹125.50.
What is the quality score of CANBK?
Canara Bank has a Quality Score of 29/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the net profit margin of CANBK?
The net profit margin of Canara Bank is about 37.0%, meaning it keeps roughly 37.0% of revenue as net income. Based on the latest reported figures.
Does Canara Bank pay a dividend?
Canara Bank currently shows a dividend yield of about 3.35% relative to its recent price (as of Sep 5, 2026).
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