Is City Holding Co. overvalued or undervalued?

As of 31 October 2025, the valuation grade for City Holding Co. moved from expensive to fair, indicating a shift in its market perception. The company appears fairly valued based on its current metrics, with 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, Axos Financial, Inc. has a lower P/E of 13.92, while Fulton Financial Corp. stands out with a very attractive valuation at a P/E of 13.49.
Despite the fair valuation, City Holding Co. has underperformed against the S&P 500 in the short term, with a year-to-date return of -0.51% compared to the S&P 500's 16.30%. Over the longer term, however, the company has shown resilience with a 5-year return of 95.07%, though this still lags behind the S&P 500's 109.18% return in the same period.