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 perceived value. The bank is currently deemed undervalued, supported by a PE ratio of 12.54, a Price to Book Value of 1.77, and a ROE of 14.15%. In comparison to its peers, HDFC Bank and ICICI Bank are considered expensive with PE ratios of 21.84 and 20.93, respectively, further highlighting Axis Bank's relative attractiveness in the market. Despite a recent decline in stock price, Axis Bank has shown resilience over a longer timeframe, with a 3-year return of 41.78%, outperforming the Sensex's return of 35.69%. This performance, combined with its favorable valuation metrics, reinforces the conclusion that Axis Bank is undervalued compared to its peers and the broader market.