Is Truist Financial Corp. overvalued or undervalued?

As of 18 June 2025, the valuation grade for Truist Financial Corp. has moved from very expensive to expensive, indicating a slight improvement in perceived value, yet still suggesting that the stock is not attractively priced. The company is currently considered overvalued based on its high P/E ratio of 336, which significantly exceeds peers such as M&T Bank Corp. at 12.00 and Fifth Third Bancorp at 14.92. Additionally, Truist's Price to Book Value stands at 0.82, while its EV to Sales ratio is 2.56, further supporting the overvaluation assessment.
In comparison to its peers, Truist's financial metrics highlight a concerning disparity, particularly with a negative ROCE of -1.85% and a minimal ROE of 0.24%. Despite a dividend yield of 4.00%, the company's performance relative to the S&P 500 shows a year-to-date decline of -5.37%, contrasting with the index's gain of 2.44%. Overall, these factors collectively indicate that Truist Financial Corp. is overvalued in the current market environment.