Is Community West Bancshares overvalued or undervalued?

As of 17 July 2025, the valuation grade for Community West Bancshares has moved from expensive to fair. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 27, while the Price to Book Value is 0.92, and the EV to EBITDA is 21.51.
In comparison to its peers, Community West Bancshares has a P/E ratio that is higher than Bankwell Financial Group, Inc. at 17.22, but lower than Colony Bankcorp, Inc., which is rated very attractive at 10.86. Additionally, the company's ROCE of 3.45% and ROE of 3.39% indicate modest returns relative to its equity and capital employed. Notably, while Community West Bancshares has shown a YTD return of 12.24%, it has underperformed the S&P 500's return of 12.22%, and significantly lagged in the 3Y and 5Y periods, suggesting potential challenges ahead.