Icici Bank PE Ratio

ICICI Bank Ltd P/E Ratio Overview 

The ICICI Bank P/E ratio shows how much investors pay for each rupee of ICICI Bank’s earnings. It helps understand the stock’s current value. It can also be compared with peers, the industry, and past levels. 

Calculation of P/E Ratio of ICICI Bank Ltd 

ICICI Bank Ltd's P/E ratio compares its earnings with investors' willingness to pay. This helps determine if the stock is undervalued or overvalued. The following formula can be used to calculate the PE ratio of ICICI Bank:  

ICICI Bank share P/E Ratio = Current Market Price per Share / Earnings Per Share (EPS) 

For example, 

If: 

ICICI Bank’s current stock price = ₹1,000 

Its EPS = ₹50 

Then: 

ICICI Bank P/E Ratio = 1000/50 = 20 

This means investors are willing to pay ₹20 for every ₹1 of earnings generated by the bank. 

How does ICICI Bank Ltd P/E Ratio benchmark against competitors? 

Comparing the P/E ratio of ICICI Bank Ltd with that of its competitors as well as with the industry average can help you determine whether or not the stock is overvalued or undervalued. The ICICI Bank P/E ratio shows how the stock's pricing over a period of time has been affected by earnings growth. High P/Es can mean more expectations for its future performance when they're higher than peers' or its historical level. If the P/E is low, the stock may be undervalued, or growth expectations may be low. Investors can see if ICICI Bank's stock is fairly valued based on this comparison. 

P/E Ratio Performance Analysis for ICICI Bank Ltd 

Analysis of the ICICI Bank P/E ratio today helps investors understand how the market values the bank’s earnings. 

Current P/E Level 

ICICI Bank’s current P/E ratio shows how much investors pay for each rupee of earnings. It reflects the bank’s current valuation based on market view and recent performance. 

Historical Trend 

The PE ratio has varied with time as a result of earnings, stock price, and economic conditions. ICICI Bank P/E ratio history helps to determine whether the current market is more expensive compared to before. 

Peer Comparison 

Comparing ICICI Bank with other banks shows if it is valued more or less by the market. A higher P/E for peers may indicate they are seen as higher growth or premium. 

Industry Context  

Comparing the bank with the overall industry shows if it trades at a premium or a discount to the sector. 

Valuation Meaning 

A lower ICICI Bank P/E Ratio could imply undervaluation or lower expectations, and a higher P/E ratio could imply strong growth expectations and increased confidence. 
 

Factors Affecting P/E Ratio of ICICI Bank Ltd  

ICICI Bank P/E ratio is influenced by several factors, including the expectations of investors and valuations. 

• The P/E ratio can increase when earnings growth is expected to be higher. 
• A higher valuation can be supported by positive market sentiment. 
• An increase in interest rates affects lending margins and earnings expectations. 
• Investor confidence is improved by better asset quality and lower non-performing assets. 
• Higher valuations are generally supported by strong economic conditions. 
• In the event that the banking sector trades at higher valuations, individual banks may follow. 
• Profitability and P/E ratios can be affected by regulatory changes. 
• When compared to peers, a higher P/E multiple can be justified.