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 15.05 as of 1 October 2026, about 15% below its 5-year median of 17.63, which places it in moderately undervalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 18.74 | -19.69% |
| 15 Years | 18.76 | -19.78% |
| 10 Years | 21.55 | -30.18% |
| 7 Years | 18.38 | -18.12% |
| 5 Years | 17.63 | -14.63% |
| 3 Years | 17.09 | -11.94% |
| 1 Year | 17.11 | -12.04% |
Historical PE Ratio
Series start. P/E is published from 7 Sept 2011. Index values go back to 1 Jan 2004.
Earnings
Index earnings are the profits behind the index level: the closing value divided by the P/E ratio, in index points. The line moves in steps because it changes only when trailing four-quarter profits are updated or the constituents change. Compare it with price to see whether a move came from earnings or from a change in what investors pay for them.
Nifty Financial Services earnings grew +17.93% a year over the last 5 years, while the index moved +6.25% a year and its P/E went from 25.4 to 15.1.
Earnings growth is annualised from the last trading day at or before the start of each window to 1 Oct 2026. Price growth uses the index level over the same two dates, excluding dividends. EPS is undefined on days with no published P/E, so those days are skipped. Past growth, not a forecast.
Ways to invest in Nifty Financial Services
1 ETF and 1 index fund track this index. Prices and NAVs as of 1 Oct 2026.
ETFs (1)
| ETF | Symbol | Price | NAV | Premium | 1Y |
|---|---|---|---|---|---|
| Mirae Asset Nifty Financial Services ETF | BFSI | 25.59 | - | - | -6.45% |
Index funds (1)
| Fund | AMC | NAV | Since |
|---|---|---|---|
| Tata Nifty Financial Services Index Fund | Tata Asset Management Private Limited | 11.561 Oct 2026 | 2024 |
Listed for information only, not a recommendation. Check expense ratio and tracking difference before investing.
Performance and risk
1-year holding windows since 2011 returned a median of +15.37% (best +92.62%, worst -35.40%).
Today's PE of 15.05 sits in band 1 of 5 of this index's history (PE below 16.8). From this band, 5-year forward returns had a median of +20.02% a year and were positive in 100% of windows (468 windows since 2011).
View full performance and risk
Returns as of September 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 4 October 2026, sourced from NSE Indices. Weights as of 30 September 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 1 October 2026, the Nifty Financial Services PE ratio is 15.05. That is about 15% below its 5-year median of 17.63 and about 12% below its 1-year median of 17.11.
Is the Nifty Financial Services undervalued right now?
On a historical basis it screens as moderately undervalued. Its current PE of 15.05 sits below every median window: 1-year (17.11), 3-year (17.09), 5-year (17.63), 7-year (18.38), 10-year (21.55), 15-year (18.76) and full-history (18.74).
What is a normal PE ratio for the Nifty Financial Services?
Over the past five years its median PE has been 17.63, and over the past three years 17.09. Today's 15.05 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 September 2026, the Nifty Financial Services total return (with dividends reinvested) is -4.42% over the past year and +7.14% 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 September 2026, the Nifty Financial Services had an annualized volatility (standard deviation of daily returns) of 17.38%. Its beta versus the Nifty 50 is 1.20, 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 2011, the Nifty Financial Services total return has a median of +15.37%, with the best window at +92.62% and the worst at -35.40%. Based on NSE Total Returns Index data; a past distribution, not a prediction.
What have 5-year returns been from PE levels like today's?
The Nifty Financial Services currently trades at a PE of 15.05, in band 1 of 5 of its own PE history. Across 468 overlapping 5-year windows since 2011 that began in this band, the median forward return was +20.02% a year, positive in 100% of windows. A past distribution, not a prediction.
How fast have Nifty Financial Services earnings grown?
Nifty Financial Services earnings, measured as the index level divided by its P/E, grew +17.93% a year over the last 5 years, while the index itself moved +6.25% a year and its P/E fell from 25.35 to 15.05. Past growth, not a forecast.
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: 1 October 2026.