Is Enterprise Bancorp, Inc. overvalued or undervalued?

As of 17 April 2025, the valuation grade for Enterprise Bancorp, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its metrics, particularly with a P/E ratio of 12, a Price to Book Value of 1.30, and a PEG Ratio of 0.82. In comparison to its peer, which has a P/E of approximately 11.83, Enterprise Bancorp is positioned competitively within the regional banks sector.
While the company's recent stock performance shows a 1-year return of 65.86% compared to the S&P 500's 17.14%, it is important to note that over longer periods, such as 3 years and 5 years, the returns lag behind the benchmark. This suggests that while the stock has performed well recently, it may not sustain this momentum against broader market trends. Overall, Enterprise Bancorp, Inc. is fairly valued at this time.