Is The Charles Schwab Corp. overvalued or undervalued?

As of 7 November 2025, the valuation grade for The Charles Schwab Corp. 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. Notably, Morgan Stanley has a P/E of 18.52, while The Goldman Sachs Group, Inc. stands at 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 29.14% compared to the index's 14.40%. This strong performance, combined with its attractive valuation metrics, reinforces the conclusion that the company is currently undervalued.