Is SBI overvalued or undervalued?

Aug 25 2025 08:01 AM IST
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As of August 22, 2025, SBI is fairly valued with a PE ratio of 10.32, but it is less attractive compared to peers like Bank of Baroda and Punjab National Bank, and has underperformed the Sensex year-to-date.
As of 22 August 2025, the valuation grade for SBI has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include 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 is less attractive than several competitors, such as Bank of Baroda with a PE ratio of 6.32 and Punjab National Bank at 8.05, both classified as very attractive. While SBI has shown a YTD return of 2.70%, it has underperformed the Sensex, which returned 4.05% in the same period. Overall, SBI appears to be fairly valued in the current market context.
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