Is The Charles Schwab Corp. overvalued or undervalued?

As of 13 May 2025, the valuation grade for The Charles Schwab Corp. has moved from fair to attractive, indicating a more favorable outlook for the company's stock. The company is currently considered undervalued, with a P/E ratio of 27, a Price to Book Value of 3.57, and an EV to EBITDA ratio of 9.56. In comparison to its peers, Morgan Stanley has a lower P/E of 16.79 and The Goldman Sachs Group, Inc. has a higher P/E of 36.62, highlighting Schwab's relative valuation attractiveness.
Additionally, the PEG ratio of 0.86 suggests that the stock is undervalued relative to its growth prospects. Despite a recent decline in stock price, Schwab has outperformed the S&P 500 year-to-date with a return of 19.42% compared to the index's 2.44%. Overall, the combination of these ratios and peer comparisons supports the conclusion that The Charles Schwab Corp. is undervalued in the current market.