Is City Union Bank overvalued or undervalued?

As of 29 August 2025, the valuation grade for City Union Bank has moved from expensive to fair. The company 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, which indicate a reasonable valuation relative to its earnings growth potential.
In comparison to its peers, 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 classified as expensive. Additionally, Axis Bank, which is rated attractive, has a PE Ratio of 12.41, indicating that City Union Bank is competitively priced within its peer group. While City Union Bank has outperformed the Sensex over the past year with a return of 16.37% compared to the Sensex's -2.83%, its recent stock performance shows a decline of 7.28% over the past week, suggesting potential short-term volatility.