Is Bankwell Financial Group, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Bankwell Financial Group, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 23, which is significantly higher than the peer average of approximately 17.22, and its Price to Book Value of 1.02, which suggests limited upside potential compared to its peers. Additionally, the EV to EBITDA ratio stands at 4.58, which, while not excessively high, still reflects a premium valuation relative to its industry.
In comparison to peers, Bank7 Corp. has a P/E ratio of 10.50, and USCB Financial Holdings, Inc. has a P/E of 11.68, both indicating more attractive valuations. Furthermore, while Bankwell has performed well year-to-date with a return of 46.36%, it has underperformed the S&P 500's return of 13.31% over the same period, suggesting that despite its strong past performance, the current valuation may not be justified. Overall, Bankwell Financial Group, Inc. is positioned as overvalued in the current market context.