Is DCB Bank overvalued or undervalued?

As of 31 July 2025, DCB Bank's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived investment appeal. The bank is currently considered undervalued, with a price-to-earnings (PE) ratio of 6.60, a price-to-book value of 0.74, and a PEG ratio of 0.36. These ratios suggest that DCB Bank is trading at a significant discount compared to its earnings growth potential.
In comparison to its peers, DCB Bank's valuation stands out against HDFC Bank, which is considered expensive with a PE ratio of 22.34, and ICICI Bank, also expensive at a PE of 21.63. While DCB Bank's net non-performing assets (NPA) to book value is at 11.00%, it maintains a respectable return on equity (ROE) of 11.27% and a return on assets (ROA) of 0.83%. Despite recent stock performance lagging behind the Sensex over the past week and month, DCB Bank has shown a year-to-date return of 11.16%, outperforming the Sensex's 3.90%.