Key market metrics for ICICI Bank Ltd. (ICICIBANK) listed on NSE. For banks sector companies, market capitalization and share price are primary valuation indicators that reflect investor confidence and the bank's franchise value.
Consolidated fair value estimates for ICICI Bank Ltd. (ICICIBANK) using multiple valuation methodologies appropriate for BANKS companies. For BANKS companies like ICICI Bank Ltd., we analyze P/E Ratio, P/B Ratio, DDM, and EPS Growth models to provide comprehensive valuation insights. Compare these estimates against the current market price to assess whether ICICI Bank Ltd. stock is undervalued or overvalued.
Summary of all valuation methods showing calculated fair value per share and assessment compared to current market price. Each method uses different approaches to estimate intrinsic value.
| Valuation Method | Value Per Share | Assessment |
|---|---|---|
| PE Ratio Valuation | ₹1,447 | Undervalued |
| P/B Ratio Valuation | ₹1,415 | Undervalued |
| Dividend Discount Model (DDM) | ₹540 | Overvalued |
| EPS Growth Valuation | ₹2,742 | Undervalued |
Value Per Share
₹1,447
Assessment
UndervaluedValue Per Share
₹1,415
Assessment
UndervaluedValue Per Share
₹540
Assessment
OvervaluedValue Per Share
₹2,742
Assessment
UndervaluedMultiple Valuation Methods: Different valuation approaches provide various perspectives on intrinsic value. PE Ratio and EPS Growth methods focus on earnings power, DCF values cash generation capacity, P/B Ratio assesses asset backing (for banks), and DDM evaluates dividend sustainability. Each method has strengths and limitations depending on company characteristics and industry dynamics.
Assessment Categories: Undervalued indicates the current market price is below calculated fair value by more than the method's threshold. Fairly Valued means the price is within the threshold range. Overvalued suggests the price exceeds fair value by more than the threshold.
Investment Consideration: No single valuation method is perfect. Use this summary to identify the range of fair values across different methodologies. When multiple methods converge on similar values, confidence increases. Significant divergence suggests deeper analysis is needed to understand which assumptions best fit ICICI Bank Ltd.'s business model and future prospects. Always combine quantitative valuation with qualitative analysis of competitive position, management quality, and industry trends.
We analyze ICICI Bank Ltd. using multiple valuation models appropriate for BANKS companies. For BANKS companies, we use P/E Ratio Analysis, P/B Ratio Valuation, Dividend Discount Model (DDM), and EPS Growth Valuation to estimate the intrinsic value of ICICI Bank Ltd. stock.
10-year Price-to-Earnings ratio trend
Current P/E Ratio
17.46
Jun 03, 2026
5-Year Median P/E
20.34
5-Year Historical Median
Difference
-2.88
14.2%
Analysis: ICICI Bank Ltd.'s current P/E ratio is 14.2% below its 5-year median, suggesting the stock may be undervalued relative to its historical earnings performance.
The P/E ratio measures how much investors pay for each rupee of earnings (Share Price / EPS). A higher PE suggests the market expects strong future growth, while a lower PE may indicate undervaluation or slower growth prospects. Compare ICICI Bank Ltd.'s current PE against its historical median and BANKS peers to gauge whether the stock is trading at a premium or discount relative to its earnings.
10-year Price-to-Book ratio trend for bank valuation
Current P/B Ratio
2.84
Jun 03, 2026
5-Year Median P/B
3.23
5-Year Historical Median
Difference
-0.39
12.1%
Analysis: ICICI Bank Ltd.'s current P/B ratio is 12.1% below its 5-year median, suggesting the stock may be undervalued relative to its book value.
The P/B ratio (Share Price / Book Value Per Share) is especially important for banks because their assets are primarily financial instruments whose book value closely reflects economic value. A P/B above 1.0 means the market is pricing in franchise value and future earnings beyond net assets. A P/B below 1.0 may signal asset quality concerns or subdued growth expectations. Compare ICICI Bank Ltd.'s P/B against peer banks and its own historical median for context.
The PE Ratio Valuation method estimates the intrinsic value of ICICI Bank Ltd. by multiplying the 5-year median P/E ratio by the latest earnings per share (diluted). This approach assumes that ICICI Bank Ltd. stock should trade at its historical median P/E ratio relative to its current earnings capacity.
5-Year Median P/E Ratio
20.34
Historical Median
Current EPS (Diluted)
₹71.14
FY 2025 (Mar 31, 2025)
Calculated Price per Share
₹1,446.99
PE Ratio Valuation
Current Stock Price
₹1,242.00
Jun 03, 2026
Calculated Price per Share = 5-Year Median P/E Ratio × Latest EPS (Diluted)
1,446.99 = 20.34 × 71.14
Based on the PE Ratio Valuation method, ICICI Bank Ltd. appears to be potentially undervalued with a 14.2% difference from the calculated fair value. The current share price is ₹1,242.00 compared to the PE Ratio Valuation of ₹1,446.99, suggesting the stock is trading below its estimated intrinsic value.
Price Difference
₹204.99 below fair value
Percentage Difference
14.2%
ICICI Bank Ltd.'s fair value is calculated by multiplying its 5-year median P/E ratio of 20.34x by the most recent diluted EPS of ₹71.14 — assuming the stock should trade near its historical valuation multiple. This method works best for mature companies with stable, positive earnings. It may be less reliable for high-growth, cyclical, or loss-making companies where historical PE ratios don't reflect future prospects.
The P/B Ratio Valuation method estimates the intrinsic value of ICICI Bank Ltd. by multiplying the 5-year median P/B ratio by the latest book value per share. This approach is particularly relevant for banks and financial institutions where book value closely approximates economic value. It assumes that ICICI Bank Ltd. stock should trade at its historical median P/B ratio relative to its current book value.
5-Year Median P/B Ratio
3.23
Historical Median
Current Book Value per Share
₹437.97
FY 2025 (Mar 31, 2025)
Calculated Price per Share
₹1,414.65
P/B Ratio Valuation
Current Stock Price
₹1,242.00
Jun 03, 2026
Based on the P/B Ratio Valuation method, ICICI Bank Ltd. appears to be potentially undervalued with a 12.2% difference from the calculated fair value. The current share price is ₹1,242.00 compared to the P/B Ratio Valuation of ₹1,414.65, suggesting the stock is trading below its estimated book value.
Price Difference
₹172.65 below fair value
Percentage Difference
12.2%
ICICI Bank Ltd.'s fair value is calculated by multiplying its 5-year median P/B ratio of 3.23x by the most recent book value per share of ₹437.97. This is especially suited for banks and financial institutions where assets (loans, securities, deposits) are primarily financial instruments and book value closely approximates economic value.
Key limitation: This method assumes the historical median P/B remains appropriate, which may not hold during structural changes in banking regulation or periods of deteriorating asset quality. It also doesn't capture intangible franchise value like brand strength or distribution network.
The Dividend Discount Model estimates the intrinsic value of ICICI Bank Ltd. by discounting expected future dividend cash flows to their present value using the Gordon Growth Model. This approach is well-suited for banks with stable dividend policies and predictable dividend growth. It assumes that ICICI Bank Ltd. will continue paying dividends that grow at a consistent rate indefinitely.
Latest Dividend per Share (D₀)
₹9.82
FY 2025 (Mar 31, 2025)
Dividend Growth Rate (g)
10.00%
Median (adjusted), 9 records
Intrinsic Value per Share
₹540.33
Gordon Growth Model
Implied Dividend Yield
2.00%
r - g
Based on the Dividend Discount Model (DDM), ICICI Bank Ltd. appears to be potentially overvalued with a 129.9% difference from the calculated intrinsic value. The current share price is ₹1,242.00 compared to the DDM intrinsic value of ₹540.33, suggesting the stock is trading above its estimated fair value based on expected dividend cash flows.
Current Stock Price
₹1,242.00
Price Difference
₹701.67 above intrinsic value
Percentage Difference
129.9%
The Gordon Growth Model calculates ICICI Bank Ltd.'s intrinsic value as D₁ / (r - g), where D₁ is next year's expected dividend (based on the latest dividend of ₹9.82), r is the required rate of return, and g is the dividend growth rate of 10.00%. This works well for banks that maintain consistent dividend policies backed by stable cash flows from lending operations.
Key limitation: The model is highly sensitive to the growth rate and discount rate — small changes significantly alter the result. It assumes constant dividend growth indefinitely, which breaks down during economic stress or when banks cut dividends due to asset quality issues or regulatory capital constraints. It may also undervalue banks that retain earnings for growth rather than distributing dividends.
The EPS Growth Valuation method estimates the intrinsic value of ICICI Bank Ltd. by projecting future earnings growth and applying ICICI Bank Ltd.'s historical median P/E ratio. This approach combines earnings growth potential with market valuation patterns to determine fair value.
5-Year Median P/E Ratio
20.34
Historical valuation
Current EPS (Diluted)
₹71.14
FY 2025 (Mar 31, 2025)
Intrinsic Value per Share
₹2,741.90
EPS Growth Valuation
Current Stock Price
₹1,242.00
Jun 03, 2026
Based on the EPS Growth Valuation method, ICICI Bank Ltd. appears to be potentially undervalued with a 54.7% difference from the calculated intrinsic value. The current share price is ₹1,242.00 compared to the EPS Growth intrinsic value of ₹2,741.90, suggesting the stock is trading below its estimated fair value based on projected earnings growth.
Current Stock Price
₹1,242.00
Price Difference
₹1,499.90 below intrinsic value
Percentage Difference
54.7%
This EPS Growth valuation is based on financial data as of Mar 31, 2025 and uses a 25.0% EPS growth rate (capped from 29.5%) , a 20.34x 5-year median P/E ratio for future price estimation, projections over 5 forecast years, and a 10.0% discount rate for present value calculations. The EPS growth rate is based on 9 years of historical data.
Note: The original median EPS growth rate of 29.5% was capped at 25% for conservative valuation calculation to avoid unrealistic valuations from exceptionally high historical growth rates.
This method projects ICICI Bank Ltd.'s EPS forward using a 25.0% median growth rate over 5 years, applies the 20.34x historical median P/E ratio to estimate the future stock price, then discounts it back to present value at a 10% discount rate. It combines earnings growth momentum with historical valuation multiples to estimate intrinsic value.
Key limitation: Assumes historical EPS growth rates will continue and that the P/E ratio stays near its median — both may not hold during business transformations, economic shifts, or for cyclical companies with volatile earnings.
Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2025