Is City Union Bank overvalued or undervalued?

As of 1 September 2025, the valuation grade for City Union Bank has moved from fair to expensive. The bank is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 12.54, a price-to-book value of 1.54, and a PEG ratio of 1.18. In comparison to its peers, HDFC Bank has a significantly higher PE of 21.05, while Axis Bank is more fairly valued with a PE of 12.6.
City Union Bank's recent stock performance has been underwhelming, with a 1-month return of -7.70%, contrasting with the Sensex's slight decline of -0.29%. This underperformance, coupled with its expensive valuation relative to peers, supports the conclusion that City Union Bank is overvalued at its current price of 197.15.