Is Axis Bank overvalued or undervalued?

As of 11 August 2025, Axis Bank's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued. Key ratios include a PE ratio of 12.70, a Price to Book Value of 1.80, and a PEG ratio of 3.37. In comparison, HDFC Bank and ICICI Bank are considered expensive, with PE ratios of 22.08 and 20.95, respectively, highlighting that Axis Bank is trading at a lower valuation relative to these peers.
Despite the recent change in valuation grade, Axis Bank has shown resilience with a 1-week stock return of 0.22%, outperforming the Sensex, which declined by 0.51%. However, the longer-term performance shows a decline of 6.37% over the past year compared to a modest gain of 1.13% for the Sensex. Overall, Axis Bank appears to be fairly valued within the current market context.