Is UCO Bank overvalued or undervalued?

As of 11 August 2025, UCO Bank's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The bank is currently fairly valued, with a PE ratio of 14.11, a price-to-book value of 1.11, and a PEG ratio of 0.69. In comparison to its peers, SBI is considered expensive with a PE ratio of 10.42, while Bank of Baroda and Punjab National Bank are both rated very attractive with PE ratios of 6.40 and 8.13, respectively.
Despite its fair valuation, UCO Bank has underperformed in recent periods, with a year-to-date return of -35.83% compared to a positive 3.15% return for the Sensex. This underperformance, alongside its current ratios, suggests that while the bank is not overvalued, it may still face challenges in regaining investor confidence in the near term.