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, indicating a slight improvement in its perceived value. The bank is currently considered expensive, suggesting it may be overvalued in the market. 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 reflect a mixed outlook on its valuation relative to growth prospects.
In comparison to its peers, Karur Vysya Bank's PE ratio of 11.13 is significantly lower than HDFC Bank's 21.48 and ICICI Bank's 19.83, both of which are categorized as expensive and fair, respectively. This suggests that while Karur Vysya Bank may be overvalued, it still offers a more attractive entry point compared to some of its larger competitors. Additionally, the bank has outperformed the Sensex significantly over various periods, including a year-to-date return of 35.23% compared to the Sensex's 7.77%, reinforcing the notion that it may be undervalued relative to its recent performance.