Is Punjab Natl.Bank overvalued or undervalued?

As of 9 June 2025, the valuation grade for Punjab National Bank has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The bank is currently assessed as undervalued, supported by a PE ratio of 7.75, a price to book value of 1.01, and a PEG ratio of 0.08, which suggests that the stock is trading at a significant discount relative to its earnings growth potential.
In comparison to its peers, Punjab National Bank's valuation appears favorable, especially against State Bank of India, which is considered expensive with a PE ratio of 10.32, and IDBI Bank, which has a fair valuation at a PE of 14.52. Notably, Bank of Baroda and Union Bank are categorized as very attractive with lower PE ratios of 6.55 and 6.59, respectively. Additionally, Punjab National Bank has outperformed the Sensex in the short term, with a 1-month return of 21.97% compared to the Sensex's 3.76%, reinforcing its undervalued status in the current market environment.