Is BankFinancial Corp. overvalued or undervalued?

As of 3 October 2025, the valuation grade for BankFinancial Corp. has moved from very expensive to expensive, indicating a slight improvement in perceived value. However, the company remains overvalued based on its current metrics. The P/E ratio stands at 33, significantly higher than peers like LINKBANCORP, Inc. with a P/E of 7.19, and First United Corp. at 10.09, suggesting that BankFinancial Corp. is trading at a premium compared to its competitors. Additionally, the Price to Book Value is 0.93, which is relatively low, but the negative EV to EBIT and EV to EBITDA ratios highlight potential concerns regarding profitability.
In terms of recent performance, BankFinancial Corp. has underperformed against the S&P 500, with a year-to-date return of -2.56% compared to the index's 14.18%. This trend continues over longer periods, as evidenced by a 3-year return of 30.35% versus the S&P 500's 82.57%. Overall, while there are some attractive aspects to the valuation, the high P/E ratio and underwhelming returns suggest that BankFinancial Corp. is overvalued in the current market context.