Is Pun. & Sind Bank overvalued or undervalued?

As of 17 October 2025, Pun. & Sind Bank's valuation grade has moved from fair to very attractive, indicating a significant improvement in its perceived value. The bank is currently considered undervalued. Key ratios supporting this assessment include a price-to-earnings (PE) ratio of 18.23, a price-to-book value of 0.15, and a PEG ratio of 0.28, which suggest that the stock is trading at a low relative valuation compared to its growth prospects.
In comparison to its peers, Pun. & Sind Bank's PE ratio is notably higher than that of Punjab National Bank at 8.68 and Canara Bank at 6.37, both of which are considered attractive. However, it remains lower than the very expensive SBI, which has a PE ratio of 11.24. Despite recent underperformance against the Sensex, with a year-to-date return of -37.77% compared to the Sensex's 7.44%, the bank's strong valuation metrics suggest it may present a compelling investment opportunity moving forward.