Is Cadence Bank overvalued or undervalued?

As of 28 November 2025, the valuation grade for Cadence Bank has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its P/E ratio of 10, which is significantly lower than the peer average of 12.46, and an EV to EBITDA of 6.09, which also reflects a premium compared to peers like Comerica, Inc. with an EV to EBITDA of 21.53. Additionally, the PEG ratio stands at an exceptionally low 0.02, suggesting that the stock may not be priced appropriately relative to its growth potential.
In comparison to its peers, Cadence Bank's valuation metrics are less favorable, with Old National Bancorp rated as attractive with a P/E of 15.09 and Zions Bancorporation, NA rated as attractive with a P/E of 10.08. This further supports the notion that Cadence Bank is overvalued in its current market position. Over the past year, Cadence Bank has returned 3.99%, which lags behind the S&P 500's 14.18% return, reinforcing the argument that the stock may not be a compelling investment at this price level.