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

As of 24 July 2024, the valuation grade for Eagle Bancorp, Inc. (Maryland) has moved from very attractive to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, with a P/E ratio of 9, a Price to Book Value of 0.42, and an EV to EBIT of 4.98, which are not favorable compared to its peers. For instance, Lakeland Bancorp, Inc. has a fair valuation with a P/E ratio of 10.37, suggesting that Eagle Bancorp is lagging behind in terms of valuation metrics.
The company also shows concerning returns, with a year-to-date stock return of -17.71% compared to a positive 12.22% return for the S&P 500, and over the past three years, it has declined by 54.22% while the S&P 500 gained 70.41%. These figures reinforce the notion that Eagle Bancorp is not only overvalued but also struggling significantly in the market relative to broader benchmarks.