Is KeyCorp overvalued or undervalued?

As of 12 May 2025, KeyCorp's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. Based on the analysis, KeyCorp is overvalued. The company exhibits a P/E ratio of 926, a Price to Book Value of 1.17, and an EV to Sales ratio of 2.06, all suggesting that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Huntington Bancshares, Inc. has a fair P/E ratio of 11.06, while Regions Financial Corp. shows a P/E of 9.98, both highlighting the stark contrast in valuation metrics. Additionally, KeyCorp's recent stock performance has outpaced the S&P 500 over the past year, with a return of 21.25% compared to the index's 10.26%, yet this does not mitigate the concerns regarding its current valuation levels.