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 appears to be undervalued based on its current metrics, with a PE ratio of 8.17, a price to book value of 0.94, and a PEG ratio of 0.31. These figures suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Central Bank's valuation stands out favorably against SBI, which is considered very expensive with a PE ratio of 11.84, and Punjab National Bank, which is rated fair with a PE of 9.02. Other attractive peers include Bank of Baroda at 7.32 and Union Bank at 6.32, further reinforcing Central Bank's competitive positioning in the market. Additionally, while the stock has underperformed on a year-to-date basis with a return of -25.90% compared to the Sensex's 7.42%, its long-term performance over three and five years shows significant growth, suggesting potential for recovery and value realization.