Is Karur Vysya Bank overvalued or undervalued?

As of 28 October 2025, the valuation grade for Karur Vysya Bank has moved from very expensive to expensive. The bank appears to be fairly valued based on its current metrics. Key ratios include a PE ratio of 11.39, a price-to-book value of 2.01, and a PEG ratio of 0.66, indicating a reasonable valuation compared to its earnings growth potential.
In comparison with peers, HDFC Bank has a significantly higher PE ratio of 21.67, while ICICI Bank is at 19.66, both indicating that Karur Vysya Bank is undervalued relative to these larger competitors. Additionally, the bank's return on equity stands at 17.64%, which is competitive within the sector. Notably, Karur Vysya Bank has outperformed the Sensex over various time frames, with a year-to-date return of 38.33% compared to the Sensex's 8.30%, reinforcing its valuation story.