Is Webster Financial Corp. overvalued or undervalued?

As of 30 June 2025, Webster Financial Corp. has moved from an expensive to a fair valuation grade. The company appears fairly valued based on its current metrics, with a P/E ratio of 12, a Price to Book Value of 1.00, and an EV to EBITDA of 8.41. In comparison to peers, WSFS Financial Corp. has a P/E ratio of 14.29, while Provident Financial Services, Inc. boasts a more attractive P/E of 10.67, indicating that Webster's valuation is competitive within its industry.
In terms of stock performance, Webster Financial Corp. has outperformed the S&P 500 over the past year, returning 33.19% compared to the index's 17.14%. However, over a three-year period, it has lagged behind the S&P 500, with a return of 33.42% versus 70.41% for the index. Overall, Webster Financial Corp. is fairly valued, supported by its competitive ratios and recent stock performance.