Is Bar Harbor Bankshares overvalued or undervalued?

As of 10 October 2025, the valuation grade for Bar Harbor Bankshares has moved from fair to expensive. The company appears to be overvalued, particularly when considering its P/E ratio of 11, which is significantly lower than the peer average P/E of 14.74 for comparable institutions like Northeast Bank (Maine) at 10.54 and Metropolitan Bank Holding Corp. at 12.12. Additionally, the company's price-to-book value stands at 1.05, and its EV to EBITDA ratio is 11.68, both of which suggest that the stock is trading at a premium compared to its peers.
In terms of recent performance, Bar Harbor Bankshares has underperformed against the S&P 500, with a year-to-date return of -5.98% compared to the index's 11.41%. This trend continues over longer periods, with a 1-year return of -1.00% versus the S&P 500's 13.36%. Overall, the combination of valuation ratios and recent stock performance indicates that Bar Harbor Bankshares is currently overvalued in the market.