Is Bank of Marin Bancorp overvalued or undervalued?

As of 26 September 2025, the valuation grade for Bank of Marin Bancorp has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a Price to Book Value of 0.82, an EV to Capital Employed of 0.54, and an EV to Sales ratio of 0.62. In comparison to peers, Five Star Bancorp has a P/E ratio of 13.58, while Mid Penn Bancorp, Inc. stands at 12.76, suggesting that Bank of Marin Bancorp may be positioned more favorably within its industry despite its current loss-making status.
In terms of recent performance, Bank of Marin Bancorp has outperformed the S&P 500 over the past year, returning 26.86% compared to the index's 15.64%. However, it has significantly lagged over longer periods, with a 3-year return of -19.43% versus the S&P 500's 81.77%. This mixed performance underscores the company's current valuation as fair, reflecting its potential for recovery amidst challenges.