Is Community Trust Bancorp, Inc. (Kentucky) overvalued or undervalued?

As of 30 June 2025, the valuation grade for Community Trust Bancorp, Inc. has moved from attractive to very attractive, indicating a strong positive shift in its valuation outlook. The company appears to be undervalued, especially when considering its P/E ratio of 11, which is significantly lower than the industry average, and a PEG ratio of 1.00, suggesting that the stock is fairly priced relative to its growth. Additionally, the EV to EBITDA ratio stands at 8.09, reinforcing the notion of undervaluation compared to peers.
In the peer comparison, Community Trust Bancorp, Inc. has a P/E ratio of 11, while Banc of California, Inc. is at 18.08, and Republic Bancorp, Inc. is at 10.77, highlighting that Community Trust is priced more attractively. Furthermore, the company's recent stock performance shows a 1-year return of 15.42%, which, while positive, lags behind the S&P 500's 17.14% return, suggesting room for improvement in market perception. Overall, the combination of favorable valuation ratios and peer comparisons supports the conclusion that Community Trust Bancorp, Inc. is undervalued.