Is UMB Financial Corp. overvalued or undervalued?

As of 14 November 2025, UMB Financial Corp. has moved from a fair to attractive valuation grade. The company appears undervalued, particularly when considering its P/E ratio of 21, which is higher than the peer average of approximately 19.64 for similar institutions like Comerica, Inc. (P/E of 21.53) and significantly lower than Old National Bancorp (P/E of 15.09). Additionally, the Price to Book Value stands at 1.28, indicating a reasonable valuation compared to its peers.
Despite the attractive valuation grade, UMB Financial Corp. has experienced negative returns in the short term, with a year-to-date stock return of -3.95% compared to the S&P 500's 14.49%. The company's ROE is 6.11%, which is relatively modest, and the negative EV to EBIT and EV to EBITDA ratios suggest inefficiencies in earnings generation. Overall, while the company is currently undervalued, its recent performance relative to the S&P 500 raises concerns about its near-term growth prospects.