Is TowneBank overvalued or undervalued?

As of 12 May 2025, the valuation grade for TowneBank has moved from expensive to attractive, indicating a shift in perception regarding its value. The company appears to be undervalued based on key financial ratios, including a P/E ratio of 14, a Price to Book Value of 1.17, and an EV to EBITDA of 4.92. These figures suggest that TowneBank is trading at a more favorable valuation compared to its peers.
In comparison with notable peers, TowneBank's P/E ratio of 14 is lower than Atlantic Union Bankshares Corp.'s P/E of 17.81, which is classified as expensive, and slightly higher than Independent Bank Corp.'s P/E of 13.66, which is rated fair. This positions TowneBank competitively within the industry. Additionally, the company's recent stock performance has outpaced the S&P 500 over the past year, with a return of 29.9% compared to the S&P's 10.26%, reinforcing the attractiveness of its current valuation.