Is The Charles Schwab Corp. overvalued or undervalued?

As of 31 October 2025, the valuation grade for The Charles Schwab Corp. moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears undervalued based on its key metrics, including a P/E ratio of 27, a PEG ratio of 0.86, and an EV to EBITDA ratio of 9.56. In comparison to its peers, The Charles Schwab Corp. has a more favorable valuation with a P/E ratio of 25.67, while Morgan Stanley is considered expensive at 18.52.
Despite recent underperformance against the S&P 500 over shorter periods, with a 1-week return of -1.05% compared to the index's 0.71%, the company has shown strong year-to-date and one-year returns of 26.79% and 32.28%, respectively, outpacing the S&P 500's 16.30% and 19.89%. This suggests that while there may be short-term volatility, the long-term outlook remains promising for The Charles Schwab Corp.