Is SBI overvalued or undervalued?

As of 11 September 2025, the valuation grade for SBI has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 10.41, a Price to Book Value of 1.62, and a PEG ratio of 1.65. In comparison to its peers, SBI's valuation stands out as less attractive; for instance, Bank of Baroda and Punjab National Bank have PE ratios of 6.27 and 8.23, respectively, both categorized as very attractive.
SBI's recent performance shows a stock return of 7.22% over the past year, which outpaces the Sensex's return of 0.03%, suggesting some market strength. However, when juxtaposed with its peers, the valuation metrics indicate that SBI may not be a compelling investment opportunity at its current price of 823.80, especially given the more favorable valuations of its competitors.