Is IDBI Bank overvalued or undervalued?

As of 15 July 2025, IDBI Bank's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The bank is currently considered undervalued, with a PE ratio of 14.04, a Price to Book Value of 1.75, and a PEG ratio of 0.42. These metrics suggest that IDBI Bank offers a compelling investment opportunity compared to its peers.
In the peer comparison, IDBI Bank's PE ratio stands out against the State Bank of India, which is deemed expensive at 10.28, and Punjab National Bank, which is very attractive at 7.76. Additionally, IDBI Bank's dividend yield of 3.67% and ROE of 12.47% further reinforce its strong position in the market. Notably, IDBI Bank has outperformed the Sensex with a year-to-date return of 28.30% compared to the Sensex's 5.67%, highlighting its robust performance in the current market environment.