Nepse index last week closed on 1191.07 points. The market has continuously fallen in the past two months. After the disclosure of the fourth quarter report of the fiscal year 2075/76, several companies have already announced the dividend. Likewise, other companies are in the process of dividend announcement.
During this period, it is essential to distinguish which company will provide highest return at the lowest price. So this week we bring you the P/E ratio of 27 commercial banks trading in the stock market. P/E ratio basically helps to value a company in relations to its earnings. Lower P/E ratio suggests that the company is available at a cheaper rate compared to its earnings while a high P/E may be associated with strong goodwill and image of the company.
P/E ratio below has been calculated by dividing the closing price by annualized EPS of the fourth quarter of 2075/76.
|S.N.||Bank Name||Stock Symbol||Earnings Per Share (EPS)||Last Trading Price (LTP)||P/E Ratio|
|1||Nepal Credit and Commerce Bank||NCCB||23.58||204||8.65|
|2||Agricultural Development Bank Ltd.||ADBL||44.67||425||9.51|
|3||Nepal Bangladesh Bank||NBB||20.02||213||10.64|
|4||Prime Commercial Bank||PCBL||25.38||273||10.76|
|5||Bank of Kathmandu||BOKL||24.04||261||10.86|
|6||Global IME Bank Ltd.||GBIME||27.11||295||10.88|
|7||Prabhu Bank Ltd.||PRVU||24.18||267||11.04|
|8||Sunrise Bank Ltd.||SRBL||20.94||238||11.37|
|9||Nepal Bank Ltd.||NBL||27.15||321||11.82|
|10||Siddhartha Bank Ltd.||SBL||26.59||319||12.00|
|11||Machhapuchre Bank Ltd.||MBL||21.15||256||12.10|
|12||Mega Bank Nepal Ltd.||MEGA||16.55||201||12.15|
|13||Laxmi Bank Ltd.||LBL||17.67||216||12.22|
|14||Citizens International Bank Ltd.||CZBIL||17.79||219||12.31|
|15||Sanima Bank Ltd.||SANIMA||28.04||355||12.66|
|16||Janata Bank Nepal Ltd.||JBNL||16.81||214||12.73|
|17||NIC Asia Bank||NICA||34.56||449||12.99|
|18||Kumari Bank Ltd.||KBL||15.36||203||13.22|
|19||Civil Bank Ltd.||CBL||9.5||147||15.47|
|20||Century Commercial Bank||CCBL||10.23||160||15.64|
|22||Himalayan Bank Ltd. (HBL)||HBL||33.41||535||16.01|
|23||Nepal SBI Bank Ltd.||SBI||27.26||444||16.29|
|25||Everest Bank Ltd.||EBL||37.95||622||16.39|
|26||Nepal Investment Bank||NIB||26.54||457||17.22|
|27||Standard Chartered Bank||SCB||31.15||622||19.97|
Note: The share price is of Bhadra 19, 2076
As shown in the table, ADBL has the highest EPS of Rs. 44.67 with the P/E ratio of 9.51.
Nepal Credit And Commerce Bank Limited has the lowest P/E ratio while Standard Chartered Bank has the highest P/E ratio. The average P/E ratio of the commercial banks stood at 13.23. Out of the total 18 banks have lower P/E ratio than the average.
See the P/E ratio of the banks and decide which bank stock would you like to include in the portfolio. Feel free to share your views in the comment section.