Is Texas Capital Bancshares, Inc. overvalued or undervalued?

As of 15 April 2025, the valuation grade for Texas Capital Bancshares, Inc. moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 35, an EV to EBIT of 4.08, and a Price to Book Value of 1.02. In comparison, UMB Financial Corp. has a P/E of 19.78 and Old National Bancorp has a P/E of 13.15, both indicating that Texas Capital Bancshares is trading at a premium relative to its peers.
Despite a strong ROCE of 26.01%, the low ROE of 2.87% raises concerns about profitability relative to equity. The stock has outperformed the S&P 500 over the past year with a return of 32.32% compared to the index's 10.26%, but the current valuation suggests that the stock may not offer further upside potential at these levels.