Is Axis Bank overvalued or undervalued?

As of 26 August 2025, the valuation grade for Axis Bank has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE Ratio of 12.46, a Price to Book Value of 1.76, and a PEG Ratio of 3.32, which suggest that the bank is trading at a reasonable valuation compared to its earnings growth potential.
In comparison to its peers, Axis Bank's PE Ratio of 12.46 is significantly lower than HDFC Bank's 21.55 and ICICI Bank's 20.67, both of which are categorized as expensive. Additionally, Axis Bank's ROE of 14.15% and ROA of 1.63% reflect solid profitability metrics. Despite recent underperformance against the Sensex, with a YTD return of -1.71% compared to the Sensex's 3.39%, the overall valuation metrics indicate that Axis Bank presents a compelling investment opportunity in the current market environment.