Is TrustCo Bank Corp. NY overvalued or undervalued?

As of 28 November 2025, TrustCo Bank Corp. NY's valuation grade has moved from attractive to fair, indicating a shift in its perceived investment quality. The company is fairly valued based on its current metrics, with a P/E ratio of 12, a price to book value of 0.91, and a ROE of 7.41%. In comparison, its peer, which has a P/E of 14.54, suggests that TrustCo may be lagging behind in terms of market valuation relative to its earnings.
Despite the fair valuation, TrustCo has shown a solid return of 26.48% year-to-date, outperforming the S&P 500's return of 16.45% in the same period. However, over the longer term, the company's returns have been significantly lower than the benchmark, particularly over the 3-year and 5-year periods, where it returned 10.35% and 33.96% respectively, compared to the S&P 500's 72.78% and 88.25%. This suggests that while TrustCo is currently fairly valued, its long-term growth potential may not be as strong as that of the broader market.