Is City Holding Co. overvalued or undervalued?

As of 8 May 2025, the valuation grade for City Holding Co. has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its financial ratios. The P/E ratio stands at 18, which is significantly higher than peers such as Axos Financial, Inc. at 10.66 and Fulton Financial Corp. at 13.04. Additionally, the EV to EBITDA ratio of 15.39 further supports this overvaluation, especially when compared to the industry averages.
City Holding Co. also exhibits a Price to Book Value of 2.86 and a ROE of 15.46%, which, while respectable, do not justify its current valuation when juxtaposed with peers like Park National Corp. at a P/E of 17.52. Furthermore, the company's recent stock performance has outpaced the S&P 500 over the past year, returning 15.81% compared to the index's 10.26%, but this does not alter the conclusion that the stock is overvalued at its current price of 119.58.