Is RBL Bank overvalued or undervalued?

As of 19 November 2025, RBL Bank's valuation grade has moved from very expensive to expensive, indicating a slight shift in perception but still reflecting high valuation levels. The bank is currently considered overvalued. Key ratios include a PE ratio of 39.54, a Price to Book Value of 1.20, and a ROE of 3.03%.
In comparison to its peers, RBL Bank's PE ratio significantly exceeds that of HDFC Bank at 21.5 and ICICI Bank at 19.95, both of which are also categorized as expensive. Despite a strong year-to-date return of 95.89% compared to the Sensex's 9.02%, the high valuation metrics suggest that RBL Bank's stock may not be justified at its current price of 309.50.