Is Valley National Bancorp overvalued or undervalued?

As of 7 April 2025, the valuation grade for Valley National Bancorp has moved from very attractive to fair. Based on the analysis, the company appears to be fairly valued at this time. The P/E ratio stands at 13, while the EV to EBITDA is 12.83, and the Price to Book Value is 0.67, indicating a reasonable valuation relative to its earnings and asset base.
In comparison to its peers, Valley National Bancorp's P/E ratio of 12.0962 is in line with the industry average, suggesting it is not significantly undervalued or overvalued compared to similar companies. Notably, the company's return on equity (ROE) is 5.20%, which is lower than many competitors, indicating potential room for improvement. Additionally, while the stock has outperformed the S&P 500 over the past year with a return of 34.50% compared to the index's 10.26%, its longer-term performance has lagged behind, raising questions about its growth potential moving forward.