Is 1st Source Corp. overvalued or undervalued?

As of 18 August 2025, the valuation grade for 1st Source Corp. has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its valuation ratios, which include a P/E ratio of 12, a Price to Book Value of 1.47, and an EV to EBITDA of 8.96. In comparison to peers, Trustmark Corp. has a P/E of 11.24, while First Commonwealth Financial Corp. is at 15.48, suggesting that 1st Source Corp. is positioned reasonably within its industry.
Despite the fair valuation, 1st Source Corp. has shown mixed performance against the S&P 500, with a year-to-date return of 11.70% compared to the index's 12.22%, and a 1-year return of 8.20% against 17.14% for the S&P 500. This indicates that while the stock is performing adequately, it has not kept pace with the broader market in the short term.