Is City Union Bank overvalued or undervalued?

Aug 30 2025 08:03 AM IST
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As of August 29, 2025, City Union Bank is fairly valued with a PE Ratio of 12.48, lower than its peers HDFC Bank and ICICI Bank, and has outperformed the Sensex year-to-date with a return of 13.74%.
As of 29 August 2025, the valuation grade for City Union Bank has moved from expensive to fair. The bank is currently fairly valued based on its financial metrics. Key ratios include a PE Ratio of 12.48, a Price to Book Value of 1.54, and a PEG Ratio of 1.18, indicating a reasonable valuation in comparison to its earnings growth potential.

In terms of peer comparison, City Union Bank's PE Ratio of 12.48 is notably lower than HDFC Bank's PE of 21.07 and ICICI Bank's PE of 20.4, both of which are considered expensive. Additionally, Axis Bank, which is rated attractive, has a PE of 12.41, suggesting that City Union Bank is competitively positioned within its peer group. Despite recent underperformance compared to the Sensex over shorter time frames, the bank has shown a solid year-to-date return of 13.74%, outperforming the Sensex's 2.14%.
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