Is Piper Sandler Cos. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Piper Sandler Cos. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 30, an EV to EBITDA of 26.02, and a PEG ratio of 0.34, which suggests that despite a low growth expectation relative to its price, the overall valuation metrics are high compared to peers. For instance, Jefferies Financial Group, Inc. has a P/E of 29.53 and is considered fairly valued, while Tradeweb Markets, Inc. is expensive with a P/E of 47.50.
In terms of performance, Piper Sandler has outperformed the S&P 500 across multiple time frames, with a 1-year return of 34.15% compared to the S&P 500's 17.14%. This strong performance may reflect investor optimism, but the current valuation ratios suggest that the stock is not a bargain at this price point.