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HDFC BANK
PE (Price/Earnings) Ratio

The Current P/E Ratio of HDFC BANK is 18.31.

Share Price ₹1,714.1Nov 04,2024
Market Cap ₹1,309,808.4 Cr
Earnings-TTM₹71,546.4 CrTTM-Consolidated Results
Price/Earnings18.31xCalculated as Market Cap/Earnings
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Definition & Calculation of PE (Price/Earnings) ratio of HDFC BANK

Price-to-Earnings ratio, P/E Multiple, or P/E Ratio is an important valuation multiple that is defined as:

P/E = Market Capitalization / Net Income

or, using per-share numbers:

P/E = Stock Price / Earnings Per Share (EPS)

Applying the above formula, P/E ratio of HDFC BANK is calculated as :

Current Market Cap [ ₹1,309,808.4 Cr] as on Nov 04,2024

(/) Earnings [ ₹71,546.4 Cr] based on TTM-Consolidated Results

(=) P/E Ratio [ 18.31x ]

P/E Ratio indicates the multiple of earnings investors are willing to pay to own one share of the company.

Thus, for HDFC BANK , the investors are currently willing to pay 18.31 times earnings to own 1 share of the company.

PE Multiples are the most widely used valuation multiple in practice.

Since P/E ratio uses Net Income in the calculation, P/E multiples are not always reliable for valuing companies with negative earnings.

In such cases, you may consider using Price to Book ratio or Price to Sales ratio of HDFC BANK !

P/E ratios, also, would not adjust for differences in the capital structure between companies.

The chart below summarizes the trend in P/E Ratio of HDFC BANK over the last five years.

Historical PE (Price/Earnings) ratio chart of HDFC BANK


PE Ratio Performance Analysis for HDFC BANK

- HDFC BANK 's latest p/e ratio is 18.31x.

- HDFC BANK 's p/e ratio for fiscal years ending Mar2024 to Mar2020 averaged 20.26x.

- HDFC BANK 's operated at median p/e ratio of 19.53x from fiscal years ending March 2018 to 2022.

- Looking back at the last 5 fiscal years, HDFC BANK 's p/e ratio peaked in Mar2021 at 25.86x.

- HDFC BANK 's p/e ratio hit its five-year low in Mar2024 of 17.17x.


How does HDFC BANK 's P/E Ratio benchmark against top 10 peers in Bank - Private Industry?

Peer Comparison (Bank - Private Industry)Earnings-TTM (Cr)PE RatioMarket Cap
HDFC BANK 71,546.4018.311,309,808.4
ICICI BANK LTD49,494.7018.19900,437.0
KOTAK MAHINDRA BANK LTD21,841.8015.73343,654.0
AXIS BANK LTD27,965.8012.61352,715.0
INDUSIND BANK LTD8,152.4810.1682,849.8
IDBI BANK LTD6,723.7813.1588,438.5
YES BANK LTD1,792.4735.5663,731.3
IDFC FIRST BANK LTD2,318.5720.7848,177.6
AU SMALL FINANCE BANK LTD1,819.7725.5546,500.0
THE FEDERAL BANK LTD4,180.1111.9850,072.0
BANDHAN BANK LTD2,788.2510.4129,029.7

Bank - Private Industry Benchmark (Top 10) PE Analysis vs HDFC BANK 's P/E Ratio

Top 10 Industry PeersPE Ratio
Min industry PE 10.16x
Max industry PE 35.56x
Median industry PE 15.73x
Average industry PE 17.49x



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