Is Live Oak Bancshares, Inc. overvalued or undervalued?

Oct 05 2025 11:14 AM IST
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As of October 3, 2025, Live Oak Bancshares, Inc. is considered overvalued with a valuation grade of expensive, reflected by its high P/E ratio of 21 and a year-to-date stock price decline of -12.24%, contrasting with a positive return of 14.18% for the S&P 500.
As of 3 October 2025, the valuation grade for Live Oak Bancshares, Inc. moved from very expensive to expensive. The company is currently overvalued based on its valuation ratios, which include a P/E ratio of 21, a Price to Book Value of 1.25, and an EV to EBIT of 4.40. In comparison, Renasant Corp. has a fair P/E of 21.73, while WesBanco, Inc. shows a fair P/E of 17.59, indicating that Live Oak's valuation is higher than its peers.

The company has faced significant stock price declines, with a year-to-date return of -12.24%, compared to a positive return of 14.18% for the S&P 500. This trend reinforces the notion that Live Oak Bancshares, Inc. is overvalued in the current market environment.
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