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 considered 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 a reasonable return on equity of 17.64%, its valuation metrics are still high relative to its peers.
In comparison, HDFC Bank has a significantly higher PE ratio of 21.48, while ICICI Bank is at 19.83, both of which are categorized as expensive, reflecting a premium in the market for these institutions. The recent performance of Karur Vysya Bank has outpaced the Sensex, with a year-to-date return of 35.23% compared to the Sensex's 7.77%, but this strong performance does not mitigate the current overvaluation status.