Is BayFirst Financial Corp. overvalued or undervalued?

As of 12 October 2023, BayFirst Financial Corp. has moved from fair to attractive in its grade change. The company is currently undervalued based on its financial metrics. Key ratios include a Price-to-Earnings (P/E) ratio of 12.5, a Price-to-Book (P/B) ratio of 1.1, and a Return on Equity (ROE) of 10%.
In comparison to its peers, such as First Financial Bankshares with a P/E of 15.0 and South State Corporation with a P/B of 1.5, BayFirst Financial Corp. demonstrates a more favorable valuation. This suggests that the market has not fully recognized its potential relative to its competitors. Additionally, BayFirst's recent stock performance has outpaced the Sensex, reinforcing the notion of its undervaluation.