GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » HDFC Bank Ltd (NYSE:HDB) » Definitions » Beta

HDB (HDFC Bank) Beta : 0.72 (As of Oct. 31, 2024)


View and export this data going back to 2001. Start your Free Trial

What is HDFC Bank Beta?

Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-10-31), HDFC Bank's Beta is 0.72.


HDFC Bank Beta Historical Data

The historical data trend for HDFC Bank's Beta can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

HDFC Bank Beta Chart

HDFC Bank Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beta
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.86 0.83 0.88 0.70 0.69

HDFC Bank Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
Beta Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.88 0.96 0.70 0.76 0.69

Competitive Comparison of HDFC Bank's Beta

For the Banks - Regional subindustry, HDFC Bank's Beta, along with its competitors' market caps and Beta data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


HDFC Bank's Beta Distribution in the Banks Industry

For the Banks industry and Financial Services sector, HDFC Bank's Beta distribution charts can be found below:

* The bar in red indicates where HDFC Bank's Beta falls into.



HDFC Bank Beta Calculation

Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.


HDFC Bank  (NYSE:HDB) Beta Explanation

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.

Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)


HDFC Bank Beta Related Terms

Thank you for viewing the detailed overview of HDFC Bank's Beta provided by GuruFocus.com. Please click on the following links to see related term pages.


HDFC Bank Business Description

Address
Senapati Bapat Marg, HDFC Bank House, Lower Parel (West), Mumbai, MH, IND, 400013
HDFC Bank Ltd is an Indian bank. It operates in the following segments; Treasury, Retail banking, Wholesale banking, and Other banking business. The maximum revenue for the company is generated from its Retail banking segment which serves retail customers through its branch network and other channels. This segment raises customer deposits and provides loans and other services to customers using different product groups. Its other operations include providing wholesale banking services to corporates, government entities, and other enterprises, generating income from its treasury operations, and performing para banking activities such as offering credit cards, debit cards, etc. Geographically, the company generates a majority of its revenue from its operations in India.

HDFC Bank Headlines

From GuruFocus

Q4 2023 HDFC Bank Ltd Earnings Call Transcript

By GuruFocus Research 02-10-2024

Q3 2024 HDFC Bank Ltd Earnings Call Transcript

By GuruFocus Research 02-10-2024

HDFC Bank Limited 20-F Available Online

By Business Wire 07-29-2024

Q2 2022 HDFC Bank Ltd Earnings Call Transcript

By GuruFocus Research 02-10-2024

Q3 2022 HDFC Bank Ltd Earnings Call Transcript

By GuruFocus Research 02-10-2024

Q2 2024 HDFC Bank Ltd Earnings Call Transcript

By GuruFocus Research 02-10-2024

HDFC Bank Ltd Investor and Analyst Update Transcript

By GuruFocus Research 02-10-2024

Q1 2022 HDFC Bank Ltd Earnings Call Transcript

By GuruFocus Research 02-10-2024