Is TrustCo Bank Corp. NY overvalued or undervalued?

As of 2 May 2025, TrustCo Bank Corp. NY has moved from an expensive to a fair valuation grade. The company is currently fairly valued based on its P/E ratio of 12, which is slightly above the industry average of approximately 11.44 for Provident Financial Services, Inc. and below the 12.93 of Northwest Bancshares, Inc. Additionally, TrustCo's price to book value stands at 0.91, indicating it is trading below its book value, which is a positive sign for potential investors. The dividend yield of 4.42% further enhances its attractiveness, especially in a low-interest-rate environment.
In comparison with peers, TrustCo's valuation metrics are competitive, with its fair valuation aligning with OceanFirst Financial Corp. at a P/E of 10.75 and Brookline Bancorp, Inc. at 12.51. However, it lags behind Capitol Federal Financial, Inc., which has a higher P/E of 14.60, indicating a premium for its growth prospects. Despite a year-to-date return of -4.77%, TrustCo has performed well over the past year with an 18.94% increase, outpacing the S&P 500's 10.26% return, suggesting that while it may not be undervalued, it offers a reasonable investment opportunity in the current market context.