Is KeyCorp overvalued or undervalued?

As of 27 June 2025, KeyCorp's valuation grade has moved from very expensive to very attractive, indicating a significant shift in its perceived value. The company is currently undervalued, with a P/E ratio of 926, which is starkly higher than its peers like Huntington Bancshares, Inc. at 11.06 and Regions Financial Corp. at 9.98. Additionally, KeyCorp's Price to Book Value stands at 1.17, while its EV to Sales ratio is 2.06, both of which suggest that the market may not be fully recognizing the company's potential.
Despite the high P/E ratio, KeyCorp's recent performance has outpaced the S&P 500, with a 1-year stock return of 26.43% compared to the index's 12.59%. This performance, coupled with a dividend yield of 3.45% and a negative ROCE of -0.95%, highlights the disparity between market perception and actual performance metrics. Overall, the valuation metrics and peer comparisons suggest that KeyCorp is undervalued in the current market environment.