Is Pathward Financial, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Pathward Financial, Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its P/E ratio of 10, which is lower than the peer average of approximately 13.49 for Fulton Financial Corp. and 16.45 for Community Bank System, Inc. Additionally, the EV to EBITDA ratio stands at 7.88, which is also less favorable compared to peers like Simmons First National Corp. with a valuation of 18.79.
The PEG ratio of 1.06 suggests that the stock is not undervalued relative to its growth, and with a dividend yield of 28.58%, it may attract income-focused investors despite its high valuation. In terms of recent performance, Pathward Financial has underperformed the S&P 500 over the past week and month, with returns of -3.13% and -5.19%, respectively, while it has outperformed over the longer term, notably with a 3-year return of 120.74% compared to the S&P 500's 82.57%. This mixed performance further supports the conclusion that the stock is currently overvalued.