Is Karur Vysya Bank overvalued or undervalued?

As of 24 October 2025, the valuation grade for Karur Vysya Bank has moved from very expensive to expensive. The bank is currently assessed as overvalued. Key ratios include a PE ratio of 11.13, a Price to Book Value of 1.96, and a PEG ratio of 0.64, which indicate that while the bank is generating reasonable returns, its valuation remains high relative to its earnings growth potential.
In comparison to its peers, HDFC Bank has a significantly higher PE ratio of 21.48, while ICICI Bank, which is rated fairly valued, has a PE of 19.83. This suggests that Karur Vysya Bank's valuation does not align favorably with the broader market, particularly when compared to more robust competitors. Notably, the bank has outperformed the Sensex in recent periods, with a year-to-date return of 35.23% compared to the Sensex's 7.77%, but this performance does not sufficiently justify its current valuation.