Is Truist Financial Corp. overvalued or undervalued?

As of 17 October 2025, Truist Financial Corp. has moved from a very attractive to a fair valuation grade. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 336, significantly higher than the industry average, while the Price to Book Value is 0.82, indicating a potential undervaluation of assets. Additionally, the EV to Sales ratio is 2.56, suggesting that the market may be pricing the company too high relative to its sales performance.
In comparison with peers, Fiserv, Inc. is classified as very expensive with a P/E of 26.71, highlighting that Truist's valuation is out of line with its industry. The return comparison shows that Truist has underperformed against the S&P 500 across multiple periods, with a 1-year return of -0.81% compared to the S&P 500's 14.08%, reinforcing the notion that the stock may be overvalued in the current market environment.