Is United Community Banks, Inc. overvalued or undervalued?

As of 8 August 2025, the valuation grade for United Community Banks, Inc. has moved from very attractive to attractive, indicating a shift in perception. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 13, a Price to Book Value of 1.02, and an EV to EBITDA of 9.08. In comparison to peers, Western Alliance Bancorp has a P/E of 11.90, while Wintrust Financial Corp. has a P/E of 12.91, suggesting that United Community Banks is positioned competitively within its industry.
Despite the recent downgrade in valuation grade, the company has shown a solid dividend yield of 3.17% and a PEG ratio of 0.45, indicating potential for growth relative to its valuation. However, its stock has underperformed compared to the S&P 500 over the 1Y and 3Y periods, with returns of 10.25% and -3.77%, respectively, compared to 17.14% and 70.41% for the index. This context reinforces the notion that while the stock may be fairly valued, it faces challenges in delivering competitive returns.