Is BankFinancial Corp. overvalued or undervalued?

As of 25 April 2025, BankFinancial Corp. has moved from a valuation grade of very expensive to expensive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 33, significantly higher than its peers such as LINKBANCORP, Inc. with a P/E of 6.92 and Hawthorn Bancshares, Inc. at 10.89. Additionally, the Price to Book Value is 0.93, indicating that the stock is trading close to its book value, but still suggests overvaluation in the context of its earnings and growth potential.
The EV to EBIT and EV to EBITDA ratios are negative at -1.04 and -1.23 respectively, which raises concerns about the company's operational efficiency and profitability. With a return on equity (ROE) of only 2.80%, BankFinancial Corp. is underperforming compared to its peers, many of which have significantly lower valuation metrics and higher returns. Despite a recent stock return of 15.32% over the past year, which outperformed the S&P 500's 10.26%, the overall valuation suggests that the stock is overvalued in the current market environment.