Is Cathay General Bancorp overvalued or undervalued?

As of 17 October 2025, the valuation grade for Cathay General Bancorp has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 13, a Price to Book Value of 1.30, and an EV to EBIT of 7.20, which are relatively high compared to its peers. For instance, Synovus Financial Corp. has a more attractive P/E ratio of 10.78, while Hancock Whitney Corp. stands at 12.21, suggesting that Cathay General Bancorp may not be the best value in its sector.
Additionally, the stock has underperformed against the S&P 500 over various time frames, with a year-to-date return of -3.61% compared to the S&P 500's 13.30%. This trend is further emphasized by the one-year return of -1.54% for Cathay General Bancorp versus 14.08% for the S&P 500, reinforcing the notion that the stock may be overvalued in the current market environment.