Is United Community Banks, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for United Community Banks, Inc. moved from very attractive to attractive, indicating a shift towards a more cautious outlook. 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 attractive valuation ratios, the stock has underperformed against the S&P 500 in the year-to-date and one-year periods, with returns of -7.24% and -4.37% respectively, compared to the index's gains of 14.40% and 12.65%. This underperformance, particularly over the longer three and five-year horizons, where the company has returned -21.73% and 38.24% respectively against the S&P's 76.76% and 91.73%, reinforces the notion that while the stock may be fairly valued, it faces challenges in delivering growth relative to broader market benchmarks.