Is Axos Financial, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Axos Financial, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its valuation metrics, which include a P/E ratio of 11, a Price to Book Value of 1.79, and an EV to EBITDA of 4.81. In comparison, peers such as UMB Financial Corp. have a P/E of 19.64, while Zions Bancorporation, NA has a lower P/E of 10.08, highlighting that Axos Financial is trading at a discount relative to some peers but still appears overvalued overall.
Despite its strong performance with a year-to-date return of 21.93%, outpacing the S&P 500's 14.18%, the recent grade change and valuation ratios suggest caution. The company’s high ROCE of 69.25% and ROE of 16.40% are impressive, yet they do not fully justify the current valuation levels, reinforcing the conclusion that Axos Financial, Inc. is overvalued.