Is Central Bank overvalued or undervalued?

As of 31 October 2025, the valuation grade for Central Bank has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 8.17, a Price to Book Value of 0.94, and a PEG ratio of 0.31, all suggesting that the stock is trading at a discount relative to its earnings and growth potential.
In comparison to its peers, Central Bank's valuation stands out favorably; for instance, SBI is deemed very expensive with a PE ratio of 11.84, while Bank of Baroda, which is also attractive, has a lower PE ratio of 7.32. This positions Central Bank as a compelling investment opportunity within the public sector banking space. Notably, despite a challenging year-to-date performance of -25.90% compared to the Sensex's 7.42%, the long-term returns over 5 years show a significant outperformance of 259.65% against the Sensex's 111.89%, reinforcing the potential for recovery and growth.