Is Punjab Natl.Bank overvalued or undervalued?

As of 17 October 2025, the valuation grade for Punjab National Bank has moved from very attractive to fair. The bank is currently fairly valued, with a price-to-earnings (PE) ratio of 8.68, a price-to-book value of 0.99, and a PEG ratio of 0.21. In comparison to its peers, State Bank of India is rated as very expensive with a PE of 11.24, while Bank of Baroda is considered attractive with a PE of 6.94. Despite the recent downgrade in valuation, Punjab National Bank has shown strong performance relative to the Sensex, particularly over the longer term, with a three-year return of 208.27% compared to the Sensex's 43.73%. The bank's return on equity stands at 11.41%, and its net non-performing assets to book value ratio is 3.13, indicating a reasonable risk profile. Overall, while the bank is currently fairly valued, its strong historical performance suggests potential for future growth.