Is Webster Financial Corp. overvalued or undervalued?

As of 17 October 2025, Webster Financial Corp. moved from fair to very attractive in its valuation grade. The company appears undervalued given its P/E ratio of 12, which is lower than the peer average of approximately 12.32, and its Price to Book Value of 1.00, indicating it is trading at book value. Additionally, the EV to EBITDA ratio stands at 8.41, suggesting strong earnings relative to its enterprise value.
In comparison to peers, TFS Financial Corp. has a significantly higher P/E ratio of 55.63, while WSFS Financial Corp. is at 14.29, reinforcing Webster's relative undervaluation. Despite recent underperformance with a YTD return of -1.72% compared to the S&P 500's 13.30%, the long-term outlook remains positive, as evidenced by a 5-year return of 88.44%, which is close to the S&P 500's 91.29%.