Is Cathay General Bancorp overvalued or undervalued?

As of 30 June 2025, the valuation grade for Cathay General Bancorp moved from expensive to fair. The company appears to be fairly valued based on its P/E ratio of 13, a price to book value of 1.30, and an EV to EBIT of 7.20. In comparison to its peers, Synovus Financial Corp. has a more attractive P/E of 10.78, while Hancock Whitney Corp. is also attractive at a P/E of 12.21.
Despite the fair valuation, Cathay General Bancorp has shown strong performance with a one-year return of 16.81%, slightly lagging behind the S&P 500's return of 17.14%, but it has outperformed the index over the five-year period with a return of 120.22% compared to the S&P 500's 96.61%. Overall, the stock is fairly valued within its industry context.