ICICI Bank Ltd (IBN) receives a strong valuation ranking of 84 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. IBN has a better value than 84% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.
IBN gets a 84 Valuation Rank today. Find out what this means to you and get the rest of the rankings on IBN!
IBN has a trailing twelve month Price to Earnings (PE) ratio of 22.4. The historical average of roughly 15 shows a poor value for IBN stock as investors are paying higher share prices relative to the company's earnings. IBN's high trailing PE ratio shows that the firm has been trading above its fair market value recently. Its trailing 12-month earnings per share (EPS) of 0.19 does not justify the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.
IBN's 12-month-forward PE to Growth (PEG) ratio of 0.78 is considered a good value as the market is undervaluing IBN in relation to the company's projected earnings growth. IBN's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.
IBN's valuation metrics are strong at its current price due to a undervalued PEG ratio despite strong growth. IBN's PE and PEG are better than the market average resulting in a above average valuation score.
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