Is ConnectOne Bancorp, Inc. overvalued or undervalued?

As of 29 July 2025, the valuation grade for ConnectOne Bancorp, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 16, which is lower than the peer average of approximately 19.43, and an EV to EBITDA ratio of 14.74, which also suggests a premium compared to its peers. Additionally, the Price to Book Value stands at 0.98, which is on par with the industry but does not provide a compelling case for investment at current levels.
In comparison to its peers, Banc of California, Inc. has a fair valuation with a P/E of 18.08, while Byline Bancorp, Inc. is also fairly valued with a P/E of 11.72. The recent stock performance shows that ConnectOne Bancorp, Inc. has outperformed the S&P 500 over the year with a return of 2.90% versus 17.14%, but it lags significantly over the longer term, with a 5-year return of 78.87% compared to the S&P 500's 96.61%. This combination of high valuation ratios and relative performance suggests that the stock may not be an attractive investment at this time.