Is IDBI Bank overvalued or undervalued?

As of 22 August 2025, IDBI Bank's valuation grade has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The bank is currently considered undervalued, supported by a PE ratio of 13.09, a Price to Book Value of 1.64, and a PEG ratio of 0.48, which suggests that the stock is trading at a reasonable price relative to its growth potential.
In comparison to its peers, IDBI Bank's PE ratio is higher than that of SBI, which stands at 10.32, but significantly lower than the expensive IOB at 19.22. Other peers like Bank of Baroda and Punjab National Bank also show lower valuations with PE ratios of 6.32 and 8.05, respectively. Notably, IDBI Bank has demonstrated strong performance with a YTD return of 24.18%, significantly outperforming the Sensex's 4.05% return, reinforcing its undervalued status in the market.