Is Truist Financial Corp. overvalued or undervalued?

Oct 21 2025 12:11 PM IST
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As of October 17, 2025, Truist Financial Corp. is considered overvalued with a P/E ratio of 336, a fair valuation grade, and has underperformed the S&P 500, making it a less favorable investment.
As of 17 October 2025, the valuation grade for Truist Financial Corp. has moved from very attractive to fair. 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 and the EV to Sales ratio is 2.56, indicating a premium valuation compared to its peers.

In comparison to its peers, Truist Financial Corp. has a P/E ratio of 11.1657, while Fiserv, Inc. is considered very expensive at a P/E of 26.7136. Additionally, Truist's EV to EBITDA is -196.68, which reflects a concerning valuation relative to its earnings potential. Over the past year, Truist has underperformed the S&P 500, with a return of -0.81% compared to the index's 14.08%, reinforcing the notion that the stock may not be a favorable investment at this time.
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