Is Axis Bank overvalued or undervalued?

As of 18 July 2025, the valuation grade for Axis Bank has moved from expensive to fair, indicating a shift in its perceived value. The company is currently fairly valued. Key ratios include a PE Ratio of 13.04, a Price to Book Value of 1.84, and a PEG Ratio of 3.45.
In comparison to its peers, Axis Bank's valuation stands out against HDFC Bank, which has a PE of 22.29 and is considered expensive, and ICICI Bank, with a PE of 21.56, also categorized as expensive. Notably, Axis Bank's ROE is 14.15%, while its Net NPA to Book Value is 2.74%, suggesting a relatively stable financial position. Despite recent underperformance in stock returns compared to the Sensex, particularly over the past year, the overall valuation metrics suggest that Axis Bank is currently positioned fairly in the market.