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 bank appears to be undervalued, supported by a PE ratio of 8.17, a Price to Book Value of 0.94, and a PEG ratio of 0.31. In comparison to its peers, Bank of Baroda, which is also rated attractive, has a lower PE ratio of 7.32, while SBI is considered very expensive with a PE ratio of 11.84.
Central Bank's return on equity stands at 11.50%, with a net NPA to book value ratio of 3.59, suggesting solid performance metrics relative to its valuation. Additionally, the stock has shown resilience with a 1-month return of 4.97%, outperforming the Sensex, which returned 3.65% in the same period. Overall, these indicators reinforce the conclusion that Central Bank is undervalued in the current market.