Is BankUnited, Inc. overvalued or undervalued?

As of 17 October 2025, BankUnited, Inc. has moved from fair to attractive in its valuation grade. The company appears to be undervalued based on its current metrics, with a P/E ratio of 11, a Price to Book Value of 0.89, and a PEG Ratio of 0.78, all suggesting that the stock is trading at a discount relative to its earnings growth potential. In comparison to peers, Atlantic Union Bankshares Corp. is considered expensive with a P/E of 17.24, while Bread Financial Holdings, Inc. is fair at a P/E of 10.51, highlighting BankUnited's relative attractiveness.
Despite the positive valuation indicators, BankUnited's stock has underperformed against the S&P 500 in the short and long term, with a YTD return of -5.08% compared to the S&P 500's 13.30%. This trend continues over one year, where BankUnited's return of -4.15% lags behind the S&P 500's 14.08%. Overall, while the valuation metrics suggest an undervaluation, the recent stock performance raises concerns that investors should consider.