Is Cadence Bank overvalued or undervalued?

As of 30 October 2024, Cadence Bank's valuation grade has moved from expensive to fair, indicating a shift in its market perception. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 10, a Price to Book Value of 0.99, and an EV to EBITDA of 6.09, which suggest that the stock is reasonably priced relative to its earnings and asset value.
In comparison to its peers, Cadence Bank's P/E ratio of 9.89 is lower than Old National Bancorp's 13.15 and Valley National Bancorp's 12.10, highlighting a potential undervaluation relative to these competitors. Additionally, Cadence's PEG ratio of 0.02 indicates strong growth potential compared to its current price. Despite a year-to-date return of -9.81%, the bank has outperformed the S&P 500 over the past year with a return of 12.86%, reinforcing the notion that it is fairly valued in the current market context.