Is Esquire Financial Holdings, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Esquire Financial Holdings, Inc. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 17, a Price to Book Value of 3.05, and an EV to EBITDA of 9.79, which suggest that the stock is priced in line with its earnings and book value compared to its peers.
In comparison to its peers, Esquire Financial's P/E ratio of 18.13 is higher than Nicolet Bankshares, Inc. at 15.08, but lower than Hope Bancorp, Inc. at 25.82, indicating a mixed competitive position. Additionally, the company's impressive ROCE of 77.55% and a high dividend yield of 51.03% further highlight its strong operational efficiency and return on capital. Over the past year, Esquire Financial has outperformed the S&P 500, returning 64.80% compared to the S&P 500's 17.14%, reinforcing its strong market position despite the recent grade change.