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HDFC Bank Ltd (NYSE:HDB)
P/B Ratio
5.12 (As of Today)

As of today, HDFC Bank Ltd's share price is $50.80. HDFC Bank Ltd's Book Value per Share for the quarter that ended in Sep. 2014 was $9.92. Hence, HDFC Bank Ltd's P/B Ratio of today is 5.12.

HDB' s 10-Year P/B Ratio Range
Min: 3.21   Max: 4.46
Current: 4.4

3.21
4.46

During the past 13 years, HDFC Bank Ltd's highest P/B Ratio was 4.46. The lowest was 3.21. And the median was 4.23.

HDB's P/B Ratiois ranked higher than
54% of the 1931 Companies
in the Global Banks - Regional - Asia industry.

( Industry Median: 1.16 vs. HDB: 4.40 )

During the past 12 months, HDFC Bank Ltd's average Book Value Per Share Growth Rate was 1.80% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 14.20% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 13.80% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 26.80% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of HDFC Bank Ltd was 49.70% per year. The lowest was 12.80% per year. And the median was 26.40% per year.


Definition

HDFC Bank Ltd's P/B ratio for today is calculated as follows:

P/B Ratio=Share Price/Book Value per Share (Q: Sep. 2014)
=50.80/9.92
=5.12

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

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

A closely related ratio is called Price-to-Tangible-Book Ratio. The difference between Price-to-Tangible-Book Ratio and Price-to-Book Ratio is that book value other than intangibles are used in the calculation.


Explanation

Unlike valuation ratios relative to the earning power such as P/E ratio, P/S ratio or Price-to-Free-Cash-Flow ratio, the Price-to-Book Ratio measures the valuation of the stock relative to the underlying asset of the company.

The Price-to-Book Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The Price-to-Book Ratio does not work well for these companies. Some companies even have negative equity, so the Price-to-Book Ratio cannot be applied to them.


Related Terms

Book Value per Share, Market Cap, Total Equity, Preferred Stock, P/E ratio, P/S ratio, Price-to-Free-Cash-Flow ratio, Price-to-Tangible-Book Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

HDFC Bank Ltd Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
pb 3.844.664.383.891.733.093.373.493.443.72

HDFC Bank Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
pb 4.473.724.913.444.493.173.983.724.894.71
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