Is Western Alliance Bancorp. overvalued or undervalued?

As of 4 March 2025, the valuation grade for Western Alliance Bancorp. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 10, a Price to Book Value of 1.21, and an EV to EBITDA of 5.88, which suggest a reasonable valuation compared to its peers.
In comparison to its peers, Western Alliance Bancorp. has a lower P/E ratio than East West Bancorp, Inc. at 12.82 and First Horizon Corp. at 12.18, both of which are also rated fair. The company's return on equity (ROE) stands at 11.69%, which is competitive within the industry. Notably, Western Alliance has outperformed the S&P 500 over the past year, with a stock return of 26.61% compared to the index's 10.26%, reinforcing its valuation narrative.