Is Yes Bank overvalued or undervalued?

As of 17 October 2025, the valuation grade for Yes Bank has moved from fair to expensive, indicating a shift in its market perception. The company is currently deemed overvalued. Key ratios include a PE ratio of 25.80, a Price to Book Value of 1.43, and a PEG ratio of 0.28, which suggests that while growth may be expected, the current price does not align with the underlying financial performance. In comparison to its peers, Yes Bank's PE ratio is higher than that of ICICI Bank, which stands at 20.98 and is considered fairly valued, while HDFC Bank is also classified as expensive with a PE of 22.22. The Net NPA to Book Value ratio of 1.64 further highlights potential concerns regarding asset quality. Recent stock performance shows that Yes Bank has underperformed the Sensex over the past week, which may reinforce the notion of overvaluation as investors reassess the bank's growth prospects.