Is Yes Bank overvalued or undervalued?

As of 17 October 2025, the valuation grade for Yes Bank has moved from fair to expensive, indicating a shift in perception regarding its market value. The bank is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 25.80, a Price to Book Value of 1.43, and a PEG ratio of 0.28, which suggests that while growth expectations are low, the current price does not reflect its earnings potential adequately.
In comparison to its peers, Yes Bank's PE ratio is higher than that of ICICI Bank, which stands at 20.98, and significantly above Axis Bank's 15.32. This indicates that Yes Bank's stock is priced at a premium relative to these competitors despite lower return metrics, such as a ROE of 5.56% and an ROA of 0.66%. Additionally, Yes Bank's recent performance has lagged behind the Sensex, with a one-week return of -7.37% compared to the Sensex's 1.76%, further reinforcing the notion that it is overvalued in the current market context.