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Valley National Bancorp (VLY) Stock Looks Undervalued Despite Its 89% Run

Simply Wall St · 2d ago

Valley National Bancorp has delivered a powerful run in recent years, and that kind of climb naturally raises a question for you as an investor. Is the current share price still aligned with what the bank is earning, or has enthusiasm moved ahead of the underlying numbers?

  • Over the past 3 years the stock has returned about 89%, which puts real pressure on the earnings story to keep justifying a much higher valuation than before.
  • Recent earnings strength, supported by higher revenue and management’s push into areas like commercial and industrial lending and efficiency gains from artificial intelligence, can influence how durable profit growth and returns on equity look from here.
  • There is a second opinion on Valley National Bancorp worth weighing. See what analysts think Valley National Bancorp's shares could be worth.

The issue now is whether Valley National Bancorp's recent earnings power is enough to support today’s share price when you look closely at what investors are paying for each dollar of profit.

If you want to compare Valley National Bancorp's earnings story with others facing the same valuation question, line it up against 29 high quality undervalued stocks.

Does Valley National Bancorp Look Undervalued on Earnings?

For a bank like Valley National Bancorp that is already solidly profitable, the P/E ratio is a straightforward way to see what investors are paying for each dollar of earnings.

Valley National Bancorp currently trades on about 11.0x earnings, which is slightly below the wider banks industry on 11.4x. Compared with peers on roughly 14.9x, the stock changes hands at a steeper discount, even after the strong Q3 2026 beat on both earnings and revenue. The pattern suggests investors are still pricing in more caution than the recent income statement alone might imply.

The tailored fair multiple, which reflects the bank’s own return profile, growth expectations and risk, points to a higher P/E than where the shares trade today. On this measure, the stock screens as undervalued. Because Q3 progress in commercial and industrial lending and efficiency work with artificial intelligence has already been reported, the current discount comes through as something investors need to weigh against those operating trends. Explore the numbers behind Valley National Bancorp's P/E valuation.

NasdaqGS:VLY P/E Ratio as at Oct 2026
NasdaqGS:VLY P/E Ratio as at Oct 2026

The Valley National Bancorp Narrative: What Would Justify Today's Price?

Simply Wall St Narratives for Valley National Bancorp pick up where the valuation puzzle leaves off and spell out what would need to happen to growth, margins and earnings for the stock to be worth materially more or less than today’s price, all housed on the Community page. Rather than a single multiple or model output, each one lays out the assumptions behind its fair value so you can compare those inputs with the results Valley National Bancorp actually reports over time.

One of the top community narratives on Valley National Bancorp: 15% undervalued

"Management's continued focus on digitalization and operational efficiency has moved from plan to early execution..."

Discover why this Narrative puts Valley National Bancorp at 15% undervalued.

One more Valley National Bancorp check sits outside the earnings and P/E story

Price and profits only tell part of the story, because the people setting priorities at Valley National Bancorp and the way their rewards are structured can tilt long term outcomes in very different directions. See who runs Valley National Bancorp and how they are paid.