Is St Bk of India overvalued or undervalued?

Jun 21 2025 08:00 AM IST
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As of June 20, 2025, State Bank of India is considered overvalued with a PE ratio of 10.02, significantly higher than its peers, and has underperformed the Sensex over the past year, indicating a shift in valuation from fair to expensive.
As of 20 June 2025, the valuation grade for State Bank of India 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 10.02, a Price to Book Value of 1.61, and a PEG ratio of 1.43, which suggest that the stock is trading at a premium compared to its earnings growth potential.

In comparison to its peers, State Bank of India’s PE ratio is significantly higher than that of Bank of Baroda at 6.19 and Punjab National Bank at 7.13, both of which are rated as very attractive. This disparity highlights the overvaluation of State Bank of India relative to its competitors. Additionally, while the stock has shown a strong performance over the long term, its recent returns have lagged behind the Sensex, particularly over the past year, where it recorded a -5.66% return compared to the Sensex's 6.36%.
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