Is TowneBank overvalued or undervalued?

As of 17 October 2025, the valuation grade for TowneBank has moved from fair to expensive, indicating that the stock is currently overvalued. The company exhibits a P/E ratio of 14, a Price to Book Value of 1.17, and an EV to EBITDA of 4.92, which are relatively high compared to its peers. For instance, Atlantic Union Bankshares Corp. has a P/E of 17.24, while BankUnited, Inc. stands out with a more attractive P/E of 11.46.
In terms of recent performance, TowneBank's stock has underperformed against the S&P 500 over the one-year and year-to-date periods, returning -4.74% and -0.88%, respectively, compared to the S&P 500's returns of 14.08% and 13.30%. This trend reinforces the notion that TowneBank may be overvalued in the current market environment.