Is IDBI Bank overvalued or undervalued?

As of 22 July 2025, IDBI Bank's valuation grade has moved from fair to very attractive, indicating a significant improvement in its perceived value. The bank is currently considered undervalued, with a PE ratio of 13.12, a Price to Book Value of 1.64, and a PEG ratio of 0.48. These metrics suggest that the bank is trading at a reasonable price relative to its earnings and growth potential. In comparison to its peers, IDBI Bank's PE ratio is higher than that of Punjab National Bank, which stands at 7.55, and Bank of Baroda at 6.33, both of which are also classified as very attractive. However, IDBI Bank's PEG ratio of 0.48 is significantly more favorable than that of State Bank of India, which is considered expensive with a PE of 10.26. Notably, IDBI Bank has outperformed the Sensex with a year-to-date return of 24.51% compared to the Sensex's 5.18%, reinforcing its attractive valuation.