Nifty Financial Services PE Ratio
Valuation Percentile
Nifty Financial Services's PB is cheaper than 100% of the last 5 years.
The Nifty Financial Services PE ratio is 15.67 as of 11 September 2026, about 11% below its 5-year median of 17.66, which places it in moderately undervalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 19.16 | -18.22% |
| 7 Years | 18.44 | -15.02% |
| 5 Years | 17.66 | -11.29% |
| 3 Years | 17.13 | -8.52% |
| 1 Year | 17.20 | -8.90% |
Historical PE Ratio
Performance and risk
1-year holding windows since 2004 returned a median of +17.75% (best +167.23%, worst -60.30%).
View full performance and risk
Returns as of August 2026, from the NSE factsheet for the Nifty Financial Services. 1-year returns are absolute; 5-year returns are annualized.
Stocks in the Nifty Financial Services
The Nifty Financial Services contains 20 constituents.
Constituent list as of 13 September 2026, sourced from NSE Indices. Weights as of 31 August 2026, from the NSE factsheet.
How this index works
- Selection
- The index is designed to reflect the behaviour and performance of the Indian financial market namely 1) Banking, 2) Financial Institutions, 3) Housing Finance, 4) NBFC, 5) Insurance and 6) Other Financial Services companies.
- Rebalanced
- Semi-annually. The review of sectoral indices is undertaken semi-annually based on data for six months ending January and July.
- Weight cap
- For all other sectoral indices, the weight of each stock is capped at 33% and the weight of top 3 stocks is capped at 62%
Summarised from NSE's official methodology document (PDF) for the Nifty Financial Services; the PDF is authoritative.
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Frequently Asked Questions
What is the current Nifty Financial Services PE ratio?
As of 11 September 2026, the Nifty Financial Services PE ratio is 15.67. That is about 11% below its 5-year median of 17.66 and about 9% below its 1-year median of 17.20.
Is the Nifty Financial Services undervalued right now?
On a historical basis it screens as moderately undervalued. Its current PE of 15.67 sits below every median window: 1-year (17.20), 3-year (17.13), 5-year (17.66), 7-year (18.44) and full-history (19.16).
What is a normal PE ratio for the Nifty Financial Services?
Over the past five years its median PE has been 17.66, and over the past three years 17.13. Today's 15.67 is toward the lower end of that historical range.
How many stocks are in the Nifty Financial Services?
The Nifty Financial Services contains 20 stocks. By number of companies, its largest sectors are Financial Services (20 stocks).
What returns has the Nifty Financial Services delivered?
As of August 2026, the Nifty Financial Services total return (with dividends reinvested) is +3.77% over the past year and +8.81% annualized over the past five years. One-year figures are absolute; multi-year figures are annualized (CAGR). Data from the NSE factsheet.
How volatile is the Nifty Financial Services?
Over the year to August 2026, the Nifty Financial Services had an annualized volatility (standard deviation of daily returns) of 16.94%. Its beta versus the Nifty 50 is 1.19, meaning it has moved more than the broad market.
What is a typical one-year return for the Nifty Financial Services?
Across every one-year holding window since 2004, the Nifty Financial Services total return has a median of +17.75%, with the best window at +167.23% and the worst at -60.30%. Based on NSE Total Returns Index data; a past distribution, not a prediction.
How often is the Nifty Financial Services rebalanced?
The Nifty Financial Services is rebalanced semi-annually. The review of sectoral indices is undertaken semi-annually based on data for six months ending January and July. Details are in the official NSE methodology document.
Last updated: 11 September 2026.