Is SBI overvalued or undervalued?

As of 22 August 2025, the valuation grade for SBI has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 10.32, a Price to Book Value of 1.60, and a PEG ratio of 1.63. In comparison to its peers, SBI's valuation appears reasonable, particularly when contrasted with Bank of Baroda and Punjab National Bank, which have PE ratios of 6.32 and 8.05, respectively, both categorized as very attractive.
SBI's financial health is underscored by a return on equity (ROE) of 15.53% and a net NPA to book value ratio of 4.23, suggesting solid profitability and manageable asset quality. While SBI's recent stock performance has lagged behind the Sensex over the past week and year, its long-term returns, especially over the past five years at 311.65%, indicate strong growth potential. Overall, SBI presents a fair investment opportunity within the public sector banking space.