Is Webster Financial Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Webster Financial Corp. has moved from fair to very attractive, indicating a favorable shift in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 12, a price-to-book value of 1.00, and an EV to EBITDA ratio of 8.41. In comparison to peers, New York Community Bancorp, Inc. has a risky valuation with a P/E of -9.28, while WSFS Financial Corp. is fairly valued with a P/E of 14.29.
Despite the positive valuation indicators, Webster Financial Corp. has underperformed relative to the S&P 500 in recent periods, with a year-to-date return of -1.72% compared to the S&P 500's 13.30%. However, over a five-year horizon, the company's return of 88.44% is nearly on par with the S&P 500's 91.29%, suggesting potential for recovery and growth.