Is EVERTEC, Inc. overvalued or undervalued?

As of 7 May 2025, the valuation grade for EVERTEC, Inc. has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a P/E ratio of 19, a Price to Book Value of 4.35, and an EV to EBITDA of 9.78, which indicate a premium compared to its peers.
In comparison to its peers, EVERTEC's P/E ratio of 18.71 is higher than Hancock Whitney Corp.'s attractive valuation at 10.41 and Ameris Bancorp's attractive P/E of 11.44. Additionally, the PEG ratio for EVERTEC stands at 0.48, which is favorable, yet the overall valuation suggests that the stock is not justified at its current price level. Notably, while EVERTEC has shown a year-to-date return of 4.58%, it still lags behind the S&P 500's return of 2.44% during the same period, reinforcing the notion of overvaluation.