Is Live Oak Bancshares, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Live Oak Bancshares, Inc. moved from expensive to very expensive. The company is overvalued based on its current metrics. Key ratios include a P/E ratio of 21, a Price to Book Value of 1.25, and an EV to EBIT of 4.40, which are significantly higher than peers like Renasant Corp. with a P/E of 21.73 and WesBanco, Inc. at 17.59, both of which are considered fairly valued.
The stock has underperformed compared to the S&P 500, with a year-to-date return of -21.21% versus the index's 14.49%, and a one-year return of -35.82% against 13.19% for the S&P 500. This consistent underperformance reinforces the assessment that Live Oak Bancshares, Inc. is overvalued in the current market environment.