Is Ally Financial, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Ally Financial, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 17, a Price to Book Value of 1.18, and an EV to EBITDA of 29.37. In comparison to peers, East West Bancorp, Inc. has a more attractive P/E ratio of 15.04, while First Horizon Corp. has a fair P/E of 13.43.
Despite Ally Financial's recent performance showing a 10.05% year-to-date return compared to the S&P 500's 14.18%, the longer-term perspective reveals a 49.60% return over five years, which is significantly lower than the S&P 500's 100.56%. This suggests that while the stock is currently fairly valued, it has lagged behind broader market performance in the long run.