Is Texas Capital Bancshares, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Texas Capital Bancshares, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 35, a Price to Book Value of 1.02, and an EV to EBITDA of 3.39. In comparison to peers, UMB Financial Corp. has a P/E of 19.64 and Comerica, Inc. has a P/E of 21.53, indicating that Texas Capital Bancshares is priced higher than some of its competitors.
Despite its fair valuation, Texas Capital Bancshares has underperformed against the S&P 500 in the short term, with a year-to-date return of 8.34% compared to the S&P 500's 14.18%. However, over the longer term, the stock has shown significant growth, with a 5-year return of 155.57% against the S&P 500's 100.56%. This suggests that while the stock may be fairly valued currently, it has the potential for continued appreciation in the long run.