Is Punjab Natl.Bank overvalued or undervalued?

As of 3 October 2025, the valuation grade for Punjab National Bank has moved from very attractive to attractive, indicating a slight decrease in perceived value. The bank is currently considered undervalued, with a price-to-earnings (PE) ratio of 8.74, a price-to-book value of 1.00, and a PEG ratio of 0.21, which suggests strong growth potential relative to its earnings. The return on equity (ROE) stands at 11.41%, and the net non-performing assets (NPA) to book value ratio is 3.13%.
In comparison to its peers, Punjab National Bank's valuation appears favorable. For instance, State Bank of India is classified as expensive with a PE ratio of 10.96, while Bank of Baroda and Canara Bank have attractive ratings with PE ratios of 6.94 and 6.39, respectively. The recent stock performance has outpaced the Sensex, with a year-to-date return of 11.39% compared to the Sensex's 3.93%, reinforcing the bank's undervalued status in the current market environment.