Is BankFinancial Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for BankFinancial Corp. moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. 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 FinWise Bancorp at 20.49. Additionally, the Price to Book Value is 0.93, which suggests that the stock is trading below its book value, yet the EV to EBIT and EV to EBITDA ratios are both negative, indicating potential issues with profitability.
In comparison to the S&P 500, BankFinancial Corp. has underperformed over the past year with a return of -9.82% versus the S&P 500's 14.08%, reinforcing the notion that the stock is overvalued in the current market context. Overall, despite some attractive dividend yield of 345.42%, the valuation metrics suggest that BankFinancial Corp. is not a favorable investment at this time.