Is Karur Vysya Bank overvalued or undervalued?

As of 27 October 2025, the valuation grade for Karur Vysya Bank has moved from expensive to very expensive. This indicates a significant shift in the perception of its valuation, suggesting that the bank is currently overvalued. Key ratios include a PE ratio of 11.42, a Price to Book Value of 2.02, and a PEG ratio of 0.66, which, while indicating some growth potential, still reflect a high valuation relative to its peers.
In comparison to its peers, HDFC Bank has a PE ratio of 21.66 and ICICI Bank has a PE ratio of 19.87, both of which highlight that Karur Vysya Bank is trading at a lower PE ratio yet still classified as very expensive. The recent stock performance shows that Karur Vysya Bank has outperformed the Sensex with a year-to-date return of 38.77% compared to the Sensex's 8.50%, reinforcing the notion that the stock may be overvalued despite its strong performance.