Is Fidelity D&D Bancorp, Inc. overvalued or undervalued?

As of 25 August 2025, Fidelity D&D Bancorp, Inc. has moved from a fair to attractive valuation grade. The company appears undervalued, particularly when considering its P/E ratio of 11, which is lower than the industry average, and a PEG ratio of 0.33, indicating strong growth potential relative to its price. Additionally, the EV to EBITDA ratio stands at 1.07, suggesting that the company is trading at a reasonable valuation compared to its earnings before interest, taxes, depreciation, and amortization.
In comparison to peers, Fidelity D&D Bancorp, Inc. has a more favorable P/E ratio than ACNB Corp. at 13.51 and is also more attractive than Financial Institutions, Inc., which has a risky valuation. Despite recent performance, where the stock has underperformed against the S&P 500 with a year-to-date return of -7.79% compared to 12.22% for the index, the attractive valuation metrics suggest that there may be potential for recovery and growth in the future.