Capital One Financial (NYSE: COF) stock is down approximately 6% one week after the bank’s earnings report on Jan. 22. For the fourth quarter of 2025, the company delivered $15.62 billion in revenue, beating expectations for $15.49 billion. However, the bottom line was a miss with earnings per share of $3.86, missing estimates of $4.14.
From the perspective of investors concerned about valuation, the selloff in COF stock seems justified. Even after the drop, Capital One still trades at a price-to-earnings (P/E) ratio of over 74x. That’s a significant premium to its historical average and well above average for financial stocks.
