Yahoo Finance Yes Bank Limited (NSE:YESBANK): What’s The Analyst Consensus Outlook?
The most recent earnings update Yes Bank Limited’s (NSEI:YESBANK) released in March 2018 signalled that the company experienced a robust tailwind, eventuating to a double-digit earnings growth of 26.75%. Investors may find it useful to understand how market analysts predict Yes Bank’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. View our latest analysis for Yes Bank
Market analysts’ consensus outlook for the upcoming year seems optimistic, with earnings growing by a robust 30.45%. This growth seems to continue into the following year with rates reaching double digit 63.65% compared to today’s earnings, and finally hitting ₹86.03B by 2021.
While it’s informative understanding the growth year by year relative to today’s value, it may be more beneficial to evaluate the rate at which the business is moving every year, on average. The pro of this approach is that we can get a better picture of the direction of Yes Bank’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 19.64%. This means, we can anticipate Yes Bank will grow its earnings by 19.64% every year for the next couple of years.
Next Steps:
For Yes Bank, there are three essential aspects you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is YESBANK worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether YESBANK is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of YESBANK? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
