Is Bank Of India overvalued or undervalued?

As of 17 October 2025, the valuation grade for Bank of India has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 5.75, a price to book value of 0.71, and a PEG ratio of 0.11, all of which are considerably lower than industry averages.
In comparison to peers, Bank of India stands out with its low PE ratio of 5.75, especially when juxtaposed with State Bank of India (SBI), which has a PE ratio of 11.24 and is deemed very expensive, and Bank of Baroda, which is rated attractive with a PE of 6.94. Additionally, the company has demonstrated strong performance with a return on equity (ROE) of 12.31% and a dividend yield of 3.24%. Despite a recent dip in stock price compared to the Sensex, Bank of India has outperformed the index significantly over the year and three-year periods, reinforcing its undervalued status.