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. This indicates that the company is overvalued. The P/E ratio stands at 21, which is significantly higher than peers such as Renasant Corp. with a P/E of 21.73 and WesBanco, Inc. at 17.59. Additionally, the EV to EBITDA ratio of 3.16 and the Price to Book Value of 1.25 further emphasize the elevated valuation compared to its industry counterparts.
Given the high valuation metrics and the peer comparison, Live Oak Bancshares appears to be overvalued in the current market context. Although specific return data is not available, the recent performance against the S&P 500 could reinforce this valuation narrative, suggesting that the stock may not be a favorable investment at its current price.