Is Cullen/Frost Bankers, Inc. overvalued or undervalued?

As of 12 May 2025, the valuation grade for Cullen/Frost Bankers, Inc. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 14, a Price to Book Value of 2.04, and an EV to EBITDA of 7.15. In comparison to peers, East West Bancorp, Inc. has a more attractive P/E of 12.82, while Ally Financial, Inc. is also expensive with a P/E of 17.41.
Despite the recent stock performance showing a 28.61% return over the past year compared to the S&P 500's 10.26%, the valuation metrics suggest that Cullen/Frost Bankers, Inc. is trading at a premium relative to its peers. The PEG ratio of 1.88 further supports the notion that the stock is overvalued in the current market environment.