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Should You Buy ICICI Bank Ltd (IBN) Stock Wednesday?

Wednesday, December 07, 2022 01:29 PM | InvestorsObserver Analysts
Should You Buy ICICI Bank Ltd (IBN) Stock Wednesday?

InvestorsObserver gives ICICI Bank Ltd (IBN) a strong valuation score of 100 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. IBN currently holds a better value than 100% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 100
IBN gets a 100 Valuation Rank today. Find out what this means to you and get the rest of the rankings on IBN!

Metrics Analysis

IBN has a trailing twelve month Price to Earnings (PE) ratio of 21.7 which places it above the histroical average of roughly 15. IBN is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. IBN's trailing-12-month earnings per share (EPS) of 1.07 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
IBN has a 12 month forward PE to Growth (PEG) ratio of 1. Markets are overvaluing IBN in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 1.07's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

IBN's valuation metrics are adequate at its current price due to a fairly valued PEG ratio despite strong growth. IBN's PE and PEG are around the market average resulting in a average valuation score. Click Here to get the full Report on ICICI Bank Ltd (IBN) stock.

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