Is Northern Trust Corp. overvalued or undervalued?

As of 11 September 2025, the valuation grade for Northern Trust Corp. has moved from expensive to very expensive. The company is overvalued based on its current metrics. Key ratios include a P/E ratio of 11, a Price to Book Value of 1.94, and a PEG Ratio of 0.08, which indicates a high valuation relative to its growth prospects.
In comparison to peers, Northern Trust Corp. has a P/E ratio significantly lower than Ares Management Corp. at 111.58 and higher than T. Rowe Price Group, which stands at 12.03. Additionally, the company’s ROE of 17.01% is notable, yet its negative ROCE of -6.46% raises concerns about its efficiency in generating returns. Over the past year, Northern Trust Corp. has outperformed the S&P 500, returning 46.41% compared to the index's 17.14%, but this strong performance does not mitigate its overvaluation status.