Is Live Oak Bancshares, Inc. overvalued or undervalued?

As of 21 November 2025, the valuation grade for Live Oak Bancshares, Inc. moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 21, which is significantly higher than peers such as Renasant Corp. at 21.73 and WesBanco, Inc. at 17.59. Additionally, the EV to EBITDA ratio is 3.16, which, while lower than the industry average, still suggests a premium valuation relative to its peers.
Live Oak Bancshares, Inc. has shown disappointing returns, with a year-to-date decline of 22.40%, compared to a positive return of 12.26% for the S&P 500, reinforcing the overvaluation narrative. The company's return on equity (ROE) is relatively low at 5.91%, further indicating potential issues in generating shareholder value compared to its peers. Overall, these factors suggest that Live Oak Bancshares, Inc. is not a compelling investment at its current price.