TMP Valuation - Is Tompkins Financial Corporation Over or Undervalued?

Comprehensive analysis of Tompkins Financial Corporation valuation metrics including P/E, P/B, P/S, and EV/EBITDA ratios

Updated September 2, 2026-6 min read-View Full Analysis

Current Stock Price

$95.55

Market Cap

$1.26B

Valuation Date

Sep 2, 2026

Valuation Verdict

Fairly Valued

Based on valuation multiples, TMP appears reasonably priced relative to fundamentals. Metrics show balanced valuation.

Key Valuation Metrics

These four fundamental valuation ratios help determine if TMP is trading at a fair price relative to its earnings, assets, revenue, and cash flow generation.

P/E Ratio (Price-to-Earnings)

Good

7.52x

Below market average

Investors pay $7.52 for every $1 of annual earnings

P/B Ratio (Price-to-Book)

Good

1.34x

Moderate premium

Stock trades at 1.34x its book value per share

P/S Ratio (Price-to-Sales)

High

15.94x

High relative to sales

Market values each $1 of revenue at $15.94

EV/EBITDA

N/A

EBITDA data unavailable

How to Interpret These Metrics

P/E Ratio: Lower P/E often indicates better value, but compare against industry peers. High-growth companies typically have higher P/E ratios. Market average is 15-20x.

P/B Ratio: Values below 1.0 suggest the stock trades below its net asset value, which could indicate undervaluation or fundamental problems. Technology companies often trade at higher P/B ratios.

P/S Ratio: Useful for unprofitable companies or comparing revenue efficiency. Lower is generally better, but high-margin businesses can justify higher P/S ratios.

EV/EBITDA: Accounts for debt and excludes non-cash expenses, making it ideal for comparing companies with different capital structures. Values under 10x often indicate good value.

How TMP Compares to Peers

What This Means for Investors

Balanced Valuation

Tompkins Financial Corporation (TMP) appears fairly valued based on current multiples. This balanced valuation suggests the stock is priced appropriately relative to its fundamentals. For investors, this means the stock may be suitable for those seeking exposure to Financial Services without taking on significant valuation risk in either direction.

Bullish Considerations

P/E ratio below market average
Reasonable price relative to book value

Bearish Considerations

Elevated price-to-sales ratio

Complete Your Analysis

Valuation is just one piece of the puzzle. Get the complete picture of TMP with our comprehensive analysis tools.

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Price Forecast

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Analyst Ratings

Wall Street consensus and targets

Deep Valuation Analysis

DCF model and intrinsic value

Frequently Asked Questions

What is TMP's P/E ratio and what does it mean?

TMP has a P/E (Price-to-Earnings) ratio of 7.52. This means investors are paying $7.52 for every $1 of annual earnings. A lower P/E generally suggests better value, but it's important to compare against industry peers and growth prospects. The market average P/E is typically 15-20x.

Is TMP stock overvalued or undervalued?

Based on our analysis of key valuation metrics (P/E, P/B, P/S, EV/EBITDA), TMP appears fairly valued. Based on valuation multiples, TMP appears reasonably priced relative to fundamentals. Metrics show balanced valuation. However, valuation is just one factor to consider alongside growth prospects, competitive position, and market conditions.

What is a good P/E ratio for TMP?

There's no single "good" P/E ratio as it varies by industry and growth stage. For Tompkins Financial Corporation, compare the current P/E of 7.52 against: (1) Industry peers, (2) Historical average P/E for TMP, (3) Expected earnings growth rate. High-growth companies often justify higher P/E ratios, while mature companies typically trade at lower multiples.

How do I use valuation ratios to make investment decisions?

Valuation ratios are screening tools, not buy/sell signals. Use them to: (1) Compare TMP against competitors, (2) Identify potential over/undervaluation, (3) Understand what you're paying for earnings, assets, or sales. Combine valuation analysis with fundamental research, growth prospects, and technical analysis for comprehensive decision-making.

What is EV/EBITDA and why does it matter?

EV/EBITDA (Enterprise Value to EBITDA) is N/A for TMP. This ratio is useful because it accounts for debt and excludes non-cash expenses, making it better for comparing companies with different capital structures. Lower EV/EBITDA generally indicates better value. It's particularly useful for comparing companies in capital-intensive industries.

Disclaimer: This valuation analysis is for informational and educational purposes only and should not be considered investment advice. Valuation metrics are just one factor in investment decisions. Always conduct comprehensive research and consult with a qualified financial advisor before making investment decisions. Past performance and current valuations do not guarantee future results.