Is Community Bank System, Inc. overvalued or undervalued?

As of 22 July 2025, the valuation grade for Community Bank System, Inc. moved from expensive to fair, indicating a more favorable assessment of its value. The company appears to be fairly valued based on its P/E ratio of 16, which aligns closely with the peer average of 16.45, and a PEG ratio of 1.44, suggesting reasonable growth expectations relative to its earnings. Additionally, the Price to Book Value stands at 1.64, which is competitive within the industry.
In comparison to its peers, UMB Financial Corp. has a higher P/E of 19.64, while Zions Bancorporation, NA shows a lower P/E of 10.08, highlighting a range of valuations within the sector. Notably, Community Bank System's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 0.60% compared to the index's 12.22%, and a five-year return of 7.35% versus 96.61% for the S&P 500, reinforcing the notion that the stock may be undervalued relative to its growth potential.