Is BankFinancial Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for BankFinancial Corp. has moved from very expensive to expensive. Based on the current metrics, the company appears to be overvalued. 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. Additionally, the Price to Book Value is 0.93, which is relatively low, but the negative EV to EBIT and EV to EBITDA ratios (-1.04 and -1.23, respectively) indicate potential issues with profitability.
In terms of recent performance, BankFinancial Corp. has underperformed compared to the S&P 500, with a year-to-date return of -11.78% versus the S&P 500's 13.30%. This trend of underperformance is consistent across multiple periods, suggesting that the stock may not be a favorable investment at its current valuation.