Is Truist Financial Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Truist Financial Corp. has moved from very attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued based on key metrics, including a P/E ratio of 336, a price-to-book value of 0.82, and an EV to EBITDA ratio of -196.68. In comparison, Fiserv, Inc. is considered very expensive with a P/E of 26.71, highlighting Truist's relative valuation challenges within the regional banks sector.
Despite a dividend yield of 4.00%, the company's financial performance is underwhelming, with a ROE of only 0.24% and a negative ROCE of -1.85%. Furthermore, Truist's stock has underperformed against the S&P 500 over multiple periods, including a YTD return of -1.80% compared to the S&P 500's 13.30%, suggesting that the market may be pricing in concerns about its future growth potential.