Is Triumph Financial, Inc. overvalued or undervalued?

As of 25 April 2023, the valuation grade for Triumph Financial, Inc. has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued, with a P/E ratio of 132, which is substantially higher than its peers, such as TFS Financial Corp. at 52.08 and WSFS Financial Corp. at 12.82. Additionally, Triumph's EV to EBITDA stands at 81.72, further highlighting its inflated valuation compared to the industry.
The company's financial metrics reflect ongoing challenges, with a negative ROCE of -3.03% and a low ROE of 1.34%. These figures suggest inefficiencies in generating returns for shareholders. Furthermore, the stock has underperformed significantly against the S&P 500, with a year-to-date return of -38.80% compared to the index's 2.44%. Overall, Triumph Financial, Inc. appears to be overvalued based on its current financial ratios and performance relative to peers.