Is Yes Bank overvalued or undervalued?

As of 9 May 2025, Yes Bank's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The bank appears to be fairly valued at this time. Key ratios include a PE ratio of 27.18, a Price to Book Value of 1.37, and a PEG ratio of 0.36, which suggests that while the bank is not undervalued, it is also not significantly overvalued compared to its peers.
In comparison to its peers, Yes Bank's PE ratio is higher than that of HDFC Bank at 22.51 and ICICI Bank at 22.01, both of which are considered expensive. Additionally, the return metrics show that Yes Bank has underperformed the Sensex over the past year, with a stock return of -9.10% compared to the Sensex's 7.61%. Overall, while Yes Bank is currently fairly valued, its performance relative to peers and the broader market raises some concerns.