Is City Holding Co. overvalued or undervalued?

As of 3 October 2025, the valuation grade for City Holding Co. has moved from fair to expensive, indicating that the company is overvalued. Key valuation ratios include a P/E ratio of 18, a Price to Book Value of 2.86, and an EV to EBITDA of 15.39. In comparison to peers, City Holding Co. has a higher P/E ratio than Axos Financial, Inc. at 13.92 and Fulton Financial Corp. at 13.49, which further supports the conclusion of overvaluation.
In terms of stock performance, City Holding Co. has underperformed against the S&P 500 over the past year, with a return of 8.26% compared to the index's 17.82%. This trend is also evident in the longer-term performance, where the company’s 3-year return of 36.42% lags significantly behind the S&P 500's 82.57%. Overall, these factors suggest that City Holding Co. is currently overvalued.