Is Business First Bancshares, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Business First Bancshares, Inc. has moved from expensive to fair, indicating a more favorable assessment. The company appears fairly valued based on its current metrics, with a P/E ratio of 10, a Price to Book Value of 0.85, and an EV to EBITDA ratio of 7.42. In comparison to peers, CrossFirst Bankshares, Inc. has a P/E ratio of 10.04, while Mercantile Bank Corp. stands at 9.69, suggesting that Business First Bancshares is competitively positioned within its industry.
Despite its fair valuation, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -4.16% compared to the S&P 500's 12.22%. Over the past three years, Business First Bancshares has returned 5.89%, significantly lower than the S&P 500's 70.41%, which may indicate potential challenges ahead despite its current valuation status.