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

As of 24 October 2025, the valuation grade for Capital Bancorp, Inc. (Maryland) has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 13, which is lower than the peer average of 11.92 for Capital Bancorp and significantly lower than First Financial Corp. at 14.27. Additionally, the Price to Book Value stands at 1.42, and the EV to EBITDA ratio is 5.14, both of which suggest favorable valuation metrics compared to its peers.
In the peer comparison, Farmers National Banc Corp. is also classified as very attractive with a P/E of 11.62, while Arrow Financial Corp. is considered expensive at a P/E of 20.43. The company's strong dividend yield of 106.47% and a high ROCE of 60.58% further reinforce its attractive valuation. Although specific return data is not available, the company's recent performance should be viewed in the context of the broader market, as it continues to show resilience compared to the S&P 500.