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HDB (HDFC Bank) PS Ratio : 6.28 (As of Oct. 31, 2024)


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What is HDFC Bank PS Ratio?

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, HDFC Bank's share price is $63.03. HDFC Bank's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $10.04. Hence, HDFC Bank's PS Ratio for today is 6.28.

The historical rank and industry rank for HDFC Bank's PS Ratio or its related term are showing as below:

HDB' s PS Ratio Range Over the Past 10 Years
Min: 5.14   Med: 8.56   Max: 11.11
Current: 6.15

During the past 13 years, HDFC Bank's highest PS Ratio was 11.11. The lowest was 5.14. And the median was 8.56.

HDB's PS Ratio is ranked worse than
92.51% of 1535 companies
in the Banks industry
Industry Median: 2.54 vs HDB: 6.15

HDFC Bank's Revenue per Sharefor the six months ended in Mar. 2024 was $5.44. Its Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $10.04.

Good Sign:

HDFC Bank Ltd has shown predictable revenue and earnings growth.

During the past 12 months, the average Revenue per Share Growth Rate of HDFC Bank was 29.60% per year. During the past 3 years, the average Revenue per Share Growth Rate was 18.10% per year. During the past 5 years, the average Revenue per Share Growth Rate was 16.60% per year. During the past 10 years, the average Revenue per Share Growth Rate was 16.90% per year.

During the past 13 years, HDFC Bank's highest 3-Year average Revenue per Share Growth Rate was 106.50% per year. The lowest was 14.10% per year. And the median was 18.20% per year.

Back to Basics: PS Ratio


HDFC Bank PS Ratio Historical Data

The historical data trend for HDFC Bank's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

HDFC Bank PS Ratio Chart

HDFC Bank Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.99 8.81 8.02 7.46 5.18

HDFC Bank Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.02 13.49 7.46 5.58 5.18

Competitive Comparison of HDFC Bank's PS Ratio

For the Banks - Regional subindustry, HDFC Bank's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


HDFC Bank's PS Ratio Distribution in the Banks Industry

For the Banks industry and Financial Services sector, HDFC Bank's PS Ratio distribution charts can be found below:

* The bar in red indicates where HDFC Bank's PS Ratio falls into.



HDFC Bank PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

HDFC Bank's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=63.03/10.04
=6.28

HDFC Bank's Share Price of today is $63.03.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. HDFC Bank's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2024 was $10.04.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


HDFC Bank  (NYSE:HDB) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


HDFC Bank PS Ratio Related Terms

Thank you for viewing the detailed overview of HDFC Bank's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


HDFC Bank Business Description

Address
Senapati Bapat Marg, HDFC Bank House, Lower Parel (West), Mumbai, MH, IND, 400013
HDFC Bank Ltd is an Indian bank. It operates in the following segments; Treasury, Retail banking, Wholesale banking, and Other banking business. The maximum revenue for the company is generated from its Retail banking segment which serves retail customers through its branch network and other channels. This segment raises customer deposits and provides loans and other services to customers using different product groups. Its other operations include providing wholesale banking services to corporates, government entities, and other enterprises, generating income from its treasury operations, and performing para banking activities such as offering credit cards, debit cards, etc. Geographically, the company generates a majority of its revenue from its operations in India.

HDFC Bank Headlines

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