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HDFC Bank Ltd  (NYSE:HDB) Median PS Value: $74.15 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median P/S ratio. HDFC Bank Ltd's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2017 was $8.592. HDFC Bank Ltd's 10-Year median P/S ratio is 7.22. Therefore, the Median P/S Value for today is $74.15.

As of today, HDFC Bank Ltd's share price is $96.53. HDFC Bank Ltd's median P/S value is $74.15. Therefore, HDFC Bank Ltd's Price to Median P/S Value Ratio for today is 1.30.

NYSE:HDB' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.53   Max: 4.99
Current: 1.3

0.53
4.99

During the past 13 years, the highest Price to Median P/S Value Ratio of HDFC Bank Ltd was 4.99. The lowest was 0.53. And the median was 1.04.

NYSE:HDB's Price-to-Median-PS-Value is ranked lower than
66% of the 1469 Companies
in the Global industry.

( Industry Median: 1.16 vs. NYSE:HDB: 1.30 )

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

HDFC Bank Ltd Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Median PS Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.93 43.11 53.01 55.78 0.00

HDFC Bank Ltd Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
Median PS Value 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 Premium Member Only Premium Member Only Premium Member Only 57.38 60.05 61.79 0.00 0.00

Competitive Comparison
* 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.


Calculation

HDFC Bank Ltd's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=8.592*7.22
=62.03

10-Year Median P/S Ratio is 7.22.
HDFC Bank Ltd's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2017 was 1.981 (Sep. 2016 ) + 1.966 (Dec. 2016 ) + 2.334 (Mar. 2017 ) + 2.311 (Jun. 2017 ) = $8.592.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.

HDFC Bank Ltd's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=96.53/62.03
=1.56

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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