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 stronger investment appeal. The company is currently considered undervalued, supported by a PE ratio of 5.75, a price to book value of 0.71, and an impressive PEG ratio of 0.11. These figures suggest that the stock is trading at a significant discount compared to its earnings growth potential.
In comparison to its peers, Bank of India stands out with a lower PE ratio than State Bank of India, which has a PE of 11.24 and is classified as very expensive. Additionally, Bank of Baroda, which is rated attractive, has a PE of 6.94, further highlighting Bank of India's favorable valuation. The company's recent stock performance has also been noteworthy, with a year-to-date return of 20.88%, significantly outpacing the Sensex's return of 7.44% during the same period, reinforcing its undervalued status.