P/E ratio of 27 commercial banks of Nepal

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
21 NMB Bank NMB 24.09 382 15.86
22 Himalayan Bank Ltd. (HBL) HBL 33.41 535 16.01
23 Nepal SBI Bank Ltd. SBI 27.26 444 16.29
24 Nabil Bank NABIL 47.65 780 16.37
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.

 

 

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