Is Associated Banc-Corp overvalued or undervalued?

As of 23 January 2025, the valuation grade for Associated Banc-Corp has moved from fair to expensive, indicating that the company is currently overvalued. The P/E ratio stands at 29, significantly higher than the industry average, while the price-to-book value is 0.96, suggesting that the stock is trading close to its book value. Additionally, the EV to EBIT ratio is 54.51, which is quite elevated and reflects a premium valuation compared to its peers.
In comparison to its peers, UMB Financial Corp. has a P/E ratio of 19.78, and Old National Bancorp is even lower at 13.15, both indicating a more attractive valuation relative to Associated Banc-Corp. The company's return on equity (ROE) is only 3.35%, which is underwhelming given its high valuation. While Associated Banc-Corp has outperformed the S&P 500 over the past year with a return of 17.10% compared to 10.26%, the current valuation metrics suggest that the stock may not be justified at these levels.