Is The Charles Schwab Corp. overvalued or undervalued?

As of 7 November 2025, the valuation grade for The Charles Schwab Corp. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 27, a PEG ratio of 0.86, and an EV to EBITDA ratio of 9.56, which are favorable compared to its peers. For instance, Morgan Stanley has a P/E of 18.52, while The Goldman Sachs Group, Inc. shows a significantly higher P/E of 41.63, highlighting Schwab's relative attractiveness in the market.
In terms of recent performance, The Charles Schwab Corp. has outperformed the S&P 500 with a year-to-date return of 28.69% compared to the index's 14.40%, and a one-year return of 30.16% versus 12.65% for the S&P 500. This strong performance reinforces the valuation narrative, suggesting that the market may be underestimating the company's potential.