Is Bank Of Baroda overvalued or undervalued?

As of 6 June 2025, the valuation grade for Bank Of Baroda has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 6.50, a Price to Book Value of 0.93, and a PEG ratio of 0.65. These metrics suggest that the stock is trading at a significant discount compared to its earnings growth potential.
In comparison to its peers, Bank Of Baroda's valuation stands out favorably; for instance, St Bank of India is deemed expensive with a PE ratio of 10.23, while Punjab National Bank and Union Bank also exhibit higher valuations at 7.61 and 6.51, respectively. This positions Bank Of Baroda as an attractive investment opportunity within the public sector banking space. Notably, despite a recent decline in stock performance over the past year, the company's strong historical returns over three and five years, at 137.17% and 444.00% respectively, reinforce its potential for future growth.