Is Union Bank (I) overvalued or undervalued?

As of 31 October 2025, Union Bank (I) has moved from a very attractive to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 6.32, a price to book value of 0.94, and a PEG ratio of 0.36. These figures indicate a strong potential for growth relative to its price, especially in comparison to peers like SBI, which is rated very expensive with a PE of 11.84, and Bank of Baroda, which is also attractive with a PE of 7.32.
The bank's return on equity stands at 14.81%, and it boasts a dividend yield of 3.16%, further supporting its undervaluation thesis. Notably, Union Bank has outperformed the Sensex significantly over various time frames, including a year-to-date return of 23.43% compared to the Sensex's 7.42%. Overall, the combination of strong financial ratios and favorable comparisons to peers suggests that Union Bank (I) remains a solid investment opportunity.