I’m invested in hdfc bank but now i have started to look into peers which are of same size or bigger compared to hdfc after merger.
hdfc trades at a valution of 16 pe ratio and p/b ratio of under 3 which historically is the lowest it has been for the bank but once we start comparing it the likes of citi group and bank of america which both trades at valution of 7 pe and almost 4% dividend yield which makes them significantly cheaper than hdfc bank.
Can someone please explain to me the logic of paying such a significant premium to an indian bank ,i know we are a developing nation but the bank is already to big and i doubt it will grow at the same pace it has been growing the past few decades the growth in eps is to early to tell but it has been rangebound for the past 1 year.
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