Is Bar Harbor Bankshares overvalued or undervalued?

As of 17 April 2025, the valuation grade for Bar Harbor Bankshares has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 11, a Price to Book Value of 1.05, and an EV to EBITDA of 11.68. In comparison to peers, CNB Financial Corp. has a P/E of 13.93, while HomeTrust Bancshares, Inc. has a P/E of 12.77, indicating that Bar Harbor Bankshares is competitively priced within its industry.
Despite its fair valuation, Bar Harbor Bankshares has underperformed relative to the S&P 500 over multiple periods, with a 1-year return of 0.90% compared to the S&P 500's 17.14% and a 5-year return of 55.08% versus 96.61% for the index. This suggests that while the stock is fairly valued, it may not be the best investment choice compared to broader market options.