HDFCBANK.NS

Potentially Overvalued

HDFC Bank Limited — PEG Ratio Analysis

5.25

PEG Ratio

PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions

PEG ratio is generally unreliable for Financial Services companies

5.25

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$744.55

TTM EPS

$49.27

P/E Ratio

15.11

Growth Rate

2.9%

5-Year EPS CAGR

Sector

Financial Services

Banks - Regional

Calculated

6/17/2026

9:19:43 AM

Peer Comparison

Sample Size

4 peers

Industry Median PEG

0.66

25th Percentile

0.58

75th Percentile

2.30

HDFCBANK.NS PEG (5.25) vs Industry Median (0.66): 693% premium

Symbol	Company	PEG	P/E	Growth	vs HDFCBANK.NS
AXISBANK.NS	Axis Bank Limited	0.53	15.2	28.6%	-90%
SBIN.NS	State Bank of India	0.58	10.6	18.1%	-89%
ICICIBANK.NS	ICICI Bank Limited	0.74	16.8	22.7%	-86%
IDFCFIRSTB.NS	IDFC First Bank Limited	2.30	37.9	16.5%	-56%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.