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, indicating a shift towards overvaluation. The company appears overvalued given its Price to Book Value of 0.82, EV to Sales of 0.62, and an EV to Capital Employed ratio of 0.54. In comparison, Five Star Bancorp and Mid Penn Bancorp, both rated as fair, have P/E ratios of 13.58 and 12.76, respectively, highlighting the relative overvaluation of Bank of Marin Bancorp.
The company's recent stock performance shows a 1-year return of 19.93%, which outperformed the S&P 500's return of 16.64% in the same period, but this is overshadowed by a significant 3-year decline of -19.24% compared to the S&P 500's impressive 70.89% return. Overall, the combination of high valuation ratios and poor long-term performance suggests that Bank of Marin Bancorp is overvalued.