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 market position. The bank is currently fairly valued, with a PE ratio of 20.98, a price-to-book value of 3.37, and a PEG ratio of 1.51. In comparison to its peers, HDFC Bank is considered expensive with a PE ratio of 22.22, while Axis Bank is also expensive at a PE of 15.32, highlighting that ICICI Bank is positioned competitively within the sector.
The bank's return on equity stands at 16.09%, and its net NPA to book value is 1.96, suggesting solid operational efficiency. Notably, ICICI Bank has outperformed the Sensex over various time frames, including a year-to-date return of 12.07% compared to the Sensex's 7.44%. This performance reinforces the view that ICICI Bank is fairly valued in the current market landscape.