Is IDBI Bank overvalued or undervalued?

As of 23 July 2025, IDBI Bank's valuation grade has moved from very attractive to fair, indicating a shift in its perceived value. The bank appears to be fairly valued at this time. Key ratios include a PE ratio of 13.43, a price-to-book value of 1.68, and a PEG ratio of 0.49, which suggests that while the bank is generating reasonable earnings, its growth prospects may not be as strong compared to its peers. In comparison to its peers, IDBI Bank's PE ratio is higher than that of Punjab National Bank at 7.60 and Bank of Baroda at 6.42, both of which are rated very attractive. This indicates that IDBI Bank may be overvalued relative to these competitors, which are trading at significantly lower multiples. Additionally, IDBI Bank has outperformed the Sensex over the past year with a return of 12.74% compared to the Sensex's 2.86%, reinforcing its competitive position despite the recent downgrade in valuation.