Is ChoiceOne Financial Services, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for ChoiceOne Financial Services, Inc. has moved from attractive to expensive. This indicates that the company is currently overvalued. The P/E ratio stands at 17, which is higher than peers such as Colony Bankcorp, Inc. with a P/E of 10.86 and Penns Woods Bancorp, Inc. at 10.04. Additionally, the EV to EBITDA ratio is 16.31, which also suggests a premium compared to the industry.
In terms of performance, ChoiceOne has faced significant challenges, with a year-to-date return of -14.87% compared to the S&P 500's 12.22%, and a 1-year return of -1.81% against the S&P 500's 17.14%. This further reinforces the view that the stock is overvalued relative to its peers and the broader market.