Is The Bank of New York Mellon Corp. overvalued or undervalued?

As of 12 September 2025, The Bank of New York Mellon Corp. has moved from a fair to an expensive valuation grade. The company appears overvalued based on key metrics, including a P/E ratio of 24, a Price to Book Value of 2.68, and an EV to EBITDA of 3.58. In comparison to peers, Morgan Stanley has a P/E of 18.52, while The Charles Schwab Corp. has a P/E of 25.67, indicating that BNY Mellon is trading at a premium relative to some competitors.
Despite its strong recent performance, with a year-to-date return of 41.25% compared to the S&P 500's 12.22%, the elevated valuation ratios suggest that the stock may not be justified at its current price level. Overall, the combination of high valuation metrics and the recent grade change indicates that The Bank of New York Mellon Corp. is overvalued.