Indian Overseas Bank stock: fair value
IOB.NSThe fair value of Indian Overseas Bank under our model is $0.29, the price is 16% above.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Fairly valuedIn our model the price counts as cheap below $0.21 and expensive above $0.48 (uncertainty high, one part of the fair value is more than twice the other).
The two parts of the fair value come to $0.11 (excess return model) and $0.47 (industry comparison), and the gap between them shows how uncertain the estimate is.
Calculated with a cost of equity of 12.6%. At 13.6% the fair value would be $0.28, at 11.6% it would be $0.30.
Where the number comes from
Half from the excess return model, half from earnings times the industry P/E (12.9).
Excess return model for banks and insurers: book value plus the value of returns above the cost of equity of 12.6% (government bond yield 6.9% plus beta 0.8 times a risk premium of 7.1%).
Calculate with your own assumptionsThe calculation step by step
With these figures the excess return model arrives at $0.11 per share: book value plus the value of what the company earns above its cost of equity over time. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Step | Value |
|---|---|
| Book value per share | $0.22 |
| Stable earnings per share (book value × median return on equity of the last five fiscal years) | $0.02 |
| Return on equity in the model (median of the last five fiscal years) | 9.7% |
| Cost of equity | 12.6% |
| Excess return per share: (return − cost) × book value | −$0.01 |
| Terminal value of excess returns: excess return / (12.6% − 6.9%) | −$0.12 |
| Value per share (book value plus terminal value) | $0.11 |
| Earnings per share, last twelve months | $0.04 |
| × 12.9 (industry P/E) | $0.47 |
| Fair value (average of both parts) | $0.29 |
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2026, period end 31 Mar 2026
- Currency
- Amounts in US dollars, converted at the ECB reference rate of 12 Nov 2026 ($1 = ₹94.0836)
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Neutral, published since 7 Nov 2026 (in the score history since 2 Jan 2026)
- Valuation signal Fairly valued since 7 Nov 2026
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.