Is UMB Financial Corp. overvalued or undervalued?

As of 12 May 2025, UMB Financial Corp. has moved from expensive to fair in its valuation grade. The company is currently fairly valued, with a P/E ratio of 21, which is higher than peers such as Old National Bancorp at 13.15 and Cadence Bank at 9.89. Additionally, UMB's price to book value stands at 1.28, while its ROE is 6.11%, indicating a moderate return on equity compared to its peers.
In terms of performance, UMB Financial Corp. has shown a 1-year return of 27.76%, significantly outperforming the S&P 500's 10.26% return over the same period. However, its negative EV to EBIT and EV to EBITDA ratios (-0.96 and -0.85, respectively) suggest underlying challenges that could affect future profitability. Overall, while the company is currently fairly valued, it faces competitive pressures and operational hurdles that investors should consider.