Is J&K Bank overvalued or undervalued?

As of 14 October 2025, the valuation grade for J&K Bank has moved from attractive to very attractive. The company is currently undervalued, with a PE ratio of 5.30, a Price to Book Value of 0.77, and a PEG ratio of 0.33. These figures indicate that J&K Bank is trading at a significant discount compared to its peers, such as SBI with a PE ratio of 11.08 and Bank of Baroda at 6.94, both of which are considered more expensive.
In addition to its favorable valuation ratios, J&K Bank boasts a solid ROE of 14.56% and a net NPA to Book Value ratio of 5.61, suggesting efficient management and asset quality. Despite a recent underperformance compared to the Sensex over the past week, the bank has shown strong returns over longer periods, notably a 264.96% return over three years, reinforcing its attractive valuation in the private sector banking space.