Is BankFinancial Corp. overvalued or undervalued?

As of 12 September 2025, the valuation grade for BankFinancial Corp. has moved from very expensive to expensive, indicating a slight improvement but still suggesting that the stock is not attractively priced. Based on the current metrics, the company appears overvalued, particularly with a P/E ratio of 33, significantly higher than peers like LINKBANCORP, Inc. at 7.19 and First United Corp. at 10.09. Additionally, the Price to Book Value stands at 0.93, which is relatively low, yet the negative EV to EBIT and EV to EBITDA ratios of -1.04 and -1.23 respectively raise concerns about profitability and operational efficiency.
In terms of performance, BankFinancial Corp. has delivered a 1-year return of 8.86%, which is notably lower than the S&P 500's return of 17.14% over the same period, and its 3-year return of 28.78% lags behind the S&P 500's 70.41%. This underperformance, combined with the high valuation ratios compared to its peers, reinforces the conclusion that BankFinancial Corp. is overvalued in the current market context.