Is Indian Bank overvalued or undervalued?

As of 17 October 2025, the valuation grade for Indian Bank has moved from attractive to fair. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 8.93, a Price to Book Value of 1.40, and a PEG ratio of 0.36, indicating a reasonable valuation relative to its earnings growth potential. In comparison to its peers, Indian Bank's PE ratio of 8.93 is lower than that of SBI, which is considered very expensive at 11.24, and slightly higher than Punjab National Bank, which is fairly valued at 8.68. Other peers like Bank of Baroda and Canara Bank are rated attractive with PE ratios of 6.94 and 6.37, respectively. The recent stock performance of Indian Bank has outpaced the Sensex, with a year-to-date return of 47.38% compared to the Sensex's 7.44%, reinforcing its relatively strong position in the market.