Is ICICI Bank overvalued or undervalued?

As of 17 October 2025, ICICI Bank's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its current market position. The bank appears to be fairly valued at this time. Key ratios include a PE Ratio of 20.98, a Price to Book Value of 3.37, and a PEG Ratio of 1.51, which suggest that the bank's earnings growth is reasonably priced relative to its current market valuation.
In comparison to its peers, ICICI Bank's PE Ratio of 20.98 is lower than HDFC Bank's 22.22 and significantly lower than Kotak Mahindra Bank's 32.53, indicating that ICICI Bank may offer better value relative to its earnings. Additionally, ICICI Bank has demonstrated strong performance with a Return on Equity (ROE) of 16.09% and a Return on Assets (ROA) of 2.30%. Notably, the bank has outperformed the Sensex over various periods, including a 1-year return of 16.59% compared to the Sensex's 3.64%, reinforcing its strong market position.