Based on the provided data and current market analysis, here's an evaluation of whether COF is overvalued:
Capital One (COF) is currently trading at reasonable valuations considering its strong fundamentals and growth prospects. The stock has shown robust performance with a 39% increase over the past six months, from $146.41 to $203.53, reflecting positive market sentiment.
The pending acquisition of Discover Financial Services is expected to close in early 2025, which could be a significant growth catalyst. Analysts at Citi maintain a Buy rating with a price target of $245, suggesting potential upside from current levels.
Credit quality remains solid with stable delinquency rates, and the company has demonstrated strong fee income despite some softness in net interest income. The stock is trading at a notable discount compared to peers, indicating it may be undervalued rather than overvalued.
Recent regulatory changes, including the CFPB dropping enforcement actions against Capital One, have reduced some regulatory overhang, potentially supporting the company's valuation multiples.