Overvaluation?


One of the simple back of the envelope calculations to check if some stock is overvalued or not is to check its market capitalisation to its entire sector market capitalisation and revenues.

So, just thought of analysing the sector leaders of this bull run (HDFC Bank, TCS, HUL, Bajaj Finance).

HDFC BANK

1

(Here the point to note is, the overall PSU Bank’s Market cap is quite less than sector’s revenues… Undervalued????)

TATA CONSULTANCY SERVICES

2

HINDUSTAN UNILEVER

3

BAJAJ FINANCE

4

Data from moneycontrol.com
Data numbers in crores

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