YESBANK.NS
YES BANK LIMITEDClosedYESBANK.NS discounted cash flow valuation
YES BANK LIMITED is a banks - regional company. Its cash flows include lending and deposits, so free cash flow isn't owner earnings and this model can mislead. Compare it with peers on book value and earnings instead.
YESBANK.NS Fair Value
Reverse DCF: today's price implies -17.0% a year of FCF growth for years 1–5, against 17.9% in this model.
Model: 17.9% from analyst next-year EPS & revenue growth. Fades linearly to terminal growth by year 10.
Model: 8.54% (CAPM, see the build-up).
Long-run growth after year 10; keep it at or below nominal GDP.
Value Bridge
| PV of free cash flow, years 1–10 | INR 2.96T |
|---|---|
| PV of terminal value (64% of EV) | INR 5.26T |
| Enterprise value | INR 8.23T |
| + Cash & investments | INR 236.11B |
| − Total debt | −INR 685.09B |
| Equity value | INR 7.78T |
| ÷ Shares outstanding | 31.39B |
| Value per share | INR 247.74 |
| Market cap | INR 665.46B |
Discount Rate Build-up
| Risk-free rate (10-yr Treasury) | 5.29% |
|---|---|
| Beta (clamped 0.5–2.5) | 0.54 |
| Equity risk premium | 5.00% |
| Cost of equity (CAPM) | 7.99% |
| Pre-tax cost of debt | 12.00% |
| Tax rate | 24.4% |
| Debt / (equity + debt) | 50.7% |
| WACC | 8.54% |
Cost of debt is interest expense ÷ total debt, held between the risk-free rate and 12%.
Free Cash Flow: History and Projection
Sensitivity: Value per Share
| WACC ↓ / g → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.54% | 323.20 | 354.23 | 392.92 | 442.55 | 508.48 |
| 7.54% | 261.67 | 281.73 | 305.76 | 335.07 | 371.63 |
| 8.54% | 217.89 | 231.67 | 247.74 | 266.70 | 289.41 |
| 9.54% | 185.21 | 195.12 | 206.43 | 219.47 | 234.67 |
| 10.54% | 159.93 | 167.30 | 175.59 | 184.97 | 195.68 |
Green is above today's price, red below (full colour at ±30%). The outlined centre cell is the current inputs.
Projected Cash Flows
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Base (FY2026) | — | INR 204.78B | — | — |
| Year 1 | 17.9% | INR 241.43B | 0.921 | INR 222.44B |
| Year 2 | 17.9% | INR 284.65B | 0.849 | INR 241.62B |
| Year 3 | 17.9% | INR 335.60B | 0.782 | INR 262.46B |
| Year 4 | 17.9% | INR 395.67B | 0.721 | INR 285.09B |
| Year 5 | 17.9% | INR 466.50B | 0.664 | INR 309.67B |
| Year 6 | 14.8% | INR 535.64B | 0.612 | INR 327.59B |
| Year 7 | 11.7% | INR 598.52B | 0.563 | INR 337.25B |
| Year 8 | 8.7% | INR 650.35B | 0.519 | INR 337.62B |
| Year 9 | 5.6% | INR 686.64B | 0.478 | INR 328.41B |
| Year 10 | 2.5% | INR 703.81B | 0.441 | INR 310.14B |
Method
Two-stage free-cash-flow model, the same as the bot's lgf dcf: five years at the chosen growth rate, a straight-line fade to terminal growth by year ten, then a Gordon-growth terminal value. Everything is discounted at WACC.
Base cash flow is the trailing four quarters of operating cash flow minus capital expenditure (the latest fiscal year when quarters are missing). Default growth uses analyst long-term growth when Yahoo publishes it, else the average of next year's EPS and revenue growth, else revenue CAGR, held between −5% and 25%.
A DCF is only as good as its inputs. The terminal value is usually most of the answer, so read the sensitivity grid before the headline number. This is a model, not investment advice.