Is Axis Bank overvalued or undervalued?

As of 8 August 2025, Axis Bank's valuation grade has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently assessed as undervalued, especially when considering its price-to-earnings (PE) ratio of 12.54, a price-to-book value of 1.77, and a return on equity (ROE) of 14.15%. In comparison to its peers, Axis Bank's PE ratio is significantly lower than that of HDFC Bank at 21.84 and ICICI Bank at 20.93, both of which are considered expensive. Additionally, Axis Bank's PEG ratio of 3.33 is competitive when compared to the industry, suggesting that it offers a better growth potential relative to its price. Despite recent stock performance trailing the Sensex over the past year, Axis Bank's long-term returns of 144.08% over five years highlight its potential for value creation.