Is Synovus Financial Corp. overvalued or undervalued?

As of 8 May 2025, Synovus Financial Corp. has moved from a fair to expensive valuation grade, indicating that it is currently overvalued. The company's P/E ratio stands at 15, which is below the industry average of approximately 14.03, suggesting that while it may appear attractive on a standalone basis, relative to its peers, it is not justified at its current price. Other key ratios include a Price to Book Value of 1.49 and an EV to EBITDA of 5.73, both of which further support the notion of overvaluation when compared to the performance of peers like SouthState Corp. with a P/E of 15.14 and Pinnacle Financial Partners, Inc. at 16.22.
In terms of returns, Synovus has outperformed the S&P 500 over the past year with a return of 33.43% compared to the index's 10.26%, yet this strong performance does not mitigate the current overvaluation. Overall, the combination of the grade change, key ratios, and peer comparisons leads to the conclusion that Synovus Financial Corp. is overvalued in the current market environment.