Is Live Oak Bancshares, Inc. overvalued or undervalued?

As of 14 November 2025, the valuation grade for Live Oak Bancshares, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation appeal. The company appears overvalued based on its current metrics, including a P/E ratio of 21, a Price to Book Value of 1.25, and an EV to EBITDA ratio of 3.16. In comparison, peers such as Renasant Corp. and WesBanco, Inc. have more attractive valuations with P/E ratios of 21.73 and 17.59, respectively.
The recent performance of Live Oak Bancshares has been disappointing, with a year-to-date return of -21.21%, significantly underperforming the S&P 500's return of 14.49% over the same period. This underperformance, coupled with the high valuation ratios, reinforces the conclusion that the stock is overvalued in the current market environment.