Is Union Bank (I) overvalued or undervalued?

As of 31 October 2025, the valuation grade for Union Bank (I) has moved from very attractive to attractive. The company is currently considered undervalued, supported by a PE ratio of 6.32, a price to book value of 0.94, and a PEG ratio of 0.36. These metrics indicate that the bank is trading at a significant discount compared to its earnings growth potential.
In comparison to its peers, Union Bank's valuation stands out favorably against SBI, which is deemed very expensive with a PE ratio of 11.84, and Punjab National Bank, rated fair with a PE of 9.02. Additionally, Bank of Baroda, which is also attractive, has a higher PE ratio of 7.32. The recent performance of Union Bank has been impressive, with a year-to-date return of 23.43%, significantly outpacing the Sensex's return of 7.42%, reinforcing the notion that the stock remains undervalued in the current market environment.