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 is currently considered overvalued based on its P/E ratio of 23, which is significantly higher than the peer average of approximately 11.5 for comparable firms like Bank7 Corp. (P/E of 10.50) and USCB Financial Holdings, Inc. (P/E of 11.68). Additionally, the EV to EBITDA ratio stands at 4.58, which further supports the notion of overvaluation when compared to peers.
In terms of returns, Bankwell Financial Group has outperformed the S&P 500 over the past year, with a return of 53.57% compared to the index's 16.64%. However, over the longer term, particularly in the 3-year and 10-year periods, the company's performance lags behind the S&P 500, with returns of 50.88% and 194.07% respectively, versus 70.89% and 240.36% for the index. This mixed performance, combined with the high valuation ratios, suggests that Bankwell Financial Group, Inc. is currently overvalued.