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 of 10.78, while Hancock Whitney Corp. stands at 12.21, suggesting that Cathay General Bancorp is priced higher than some of its competitors in the regional banks sector.
Additionally, Cathay General Bancorp has underperformed compared to the S&P 500 over multiple periods, with a year-to-date return of -3.61% versus the S&P 500's 13.30%. This trend reinforces the notion that the stock may not be a favorable investment at its current valuation. Overall, the combination of its high valuation ratios and poor relative performance leads to the conclusion that Cathay General Bancorp is overvalued.