Is Bank of Marin Bancorp overvalued or undervalued?

As of 19 September 2025, the valuation grade for Bank of Marin Bancorp has moved from fair to expensive. The company is currently overvalued, as indicated by its Price to Book Value of 0.82, EV to Sales ratio of 0.62, and a negative ROE of -1.47%. In comparison, Five Star Bancorp has a P/E ratio of 13.58, while Mid Penn Bancorp, Inc. stands at 12.76, both suggesting a more favorable valuation within the industry.
Despite a recent 1-month return of 8.34% compared to the S&P 500's 3.95%, the longer-term performance shows significant underperformance, with a 3-year return of -21.11% against the S&P 500's 70.89%. This discrepancy further reinforces the notion that Bank of Marin Bancorp is currently overvalued in the market.