Is UCO Bank overvalued or undervalued?

As of 6 August 2025, the valuation grade for UCO Bank has moved from fair to attractive, indicating a shift in perception regarding its value. The bank is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 14.22, a Price to Book Value of 1.11, and a PEG Ratio of 0.70, which suggest that the stock is priced favorably compared to its earnings growth potential.
In comparison to its peers, UCO Bank's PE Ratio stands higher than that of Bank of Baroda at 6.35 and Punjab National Bank at 7.93, both of which are categorized as very attractive. This suggests that while UCO Bank is undervalued, it is still priced higher than some of its more attractively valued competitors. Additionally, UCO Bank's recent stock performance has lagged behind the Sensex, particularly in the year-to-date and one-year periods, where it has returned -35.30% and -44.25%, respectively, compared to the Sensex's positive returns. This underperformance may further support the argument for its current undervaluation.