Is Punjab Natl.Bank overvalued or undervalued?

As of 24 September 2025, the valuation grade for Punjab National Bank has moved from attractive to very attractive. The bank is currently considered undervalued, supported by a PE ratio of 8.47, a price-to-book value of 0.97, and a PEG ratio of 0.21. These metrics indicate that the bank is trading at a significant discount compared to its earnings growth potential.
In comparison to its peers, Punjab National Bank's valuation stands out favorably against SBI, which is deemed expensive with a PE ratio of 10.94, and Indian Bank, which is rated as attractive with a PE of 8.3. Other very attractive peers include Bank of Baroda and Canara Bank, with PE ratios of 6.69 and 6.24, respectively. The bank's recent performance has also been strong, with a year-to-date return of 8.03%, outperforming the Sensex's 4.58% during the same period, reinforcing its undervaluation narrative.