Is I O B overvalued or undervalued?

As of 18 July 2025, the valuation grade for I O B has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 20.09, a price to book value of 2.35, and a PEG ratio of 0.59, which suggest that the stock is priced higher relative to its earnings growth potential compared to its peers.
In comparison with notable peers, St Bank of India has a PE ratio of 10.36, while Punjab National Bank boasts a very attractive PE of 7.83. These figures highlight that I O B's valuation is significantly higher than that of its competitors, reinforcing the assessment of it being overvalued. Additionally, while I O B has shown strong returns over the long term, its year-to-date performance has lagged behind the Sensex, with a decline of 22.98% compared to a 4.63% gain in the index.