Is Capital Bancorp, Inc. (Maryland) overvalued or undervalued?

As of 28 July 2025, the valuation grade for Capital Bancorp, Inc. (Maryland) moved from fair to very attractive, indicating a strong improvement in its valuation outlook. The company appears undervalued based on its current metrics, with a P/E ratio of 13, a Price to Book Value of 1.42, and an EV to EBITDA of 5.14, all of which suggest that it is trading at a discount compared to its peers. In comparison, First Financial Corp. (Indiana) has a P/E of 14.27, while Farmers National Banc Corp. shows a very attractive valuation with a P/E of 11.62, further supporting the notion that Capital Bancorp is undervalued.
Additionally, Capital Bancorp has demonstrated strong performance with a year-to-date return of 17.37%, significantly outpacing the S&P 500's return of 12.22% in the same period. Over the past five years, the company has achieved an impressive return of 246.27%, compared to the S&P 500's 96.61%, reinforcing the attractiveness of its current valuation.