Is TowneBank overvalued or undervalued?

As of 17 October 2025, TowneBank's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 14, which is below the peer average of 15.62, and an EV to EBITDA ratio of 4.92, which is also lower than peers like Atlantic Union Bankshares Corp. at 17.24. Additionally, the PEG ratio stands at 1.14, suggesting that growth expectations may not justify the current price.
In comparison to its peers, TowneBank's ROE of 8.12% is relatively low, especially when compared to BankUnited, Inc., which is rated attractive with a P/E of 11.46. The recent stock performance shows that while TowneBank outperformed the S&P 500 in the past week with a return of 3.94% versus 1.70%, it has underperformed over the longer term, particularly in the 1-year and year-to-date periods. Overall, TowneBank appears to be overvalued in the current market context.