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

As of 10 October 2025, Fidelity D&D Bancorp, Inc. has moved from a fair to attractive valuation grade, indicating a shift towards being undervalued. The company is currently considered attractive with a P/E ratio of 11, a Price to Book Value of 1.12, and a PEG Ratio of 0.33, which suggests that it is trading at a discount relative to its growth potential. In comparison to peers, ACNB Corp. has a higher P/E ratio of 13.51, while Home Bancorp, Inc. shows a PEG Ratio of 0.75, reinforcing Fidelity D&D's relative attractiveness.
Despite the positive valuation metrics, the stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -15.39% compared to the S&P 500's 11.41%. This underperformance may indicate market skepticism about the company's future prospects, despite its attractive valuation ratios. Overall, Fidelity D&D Bancorp, Inc. appears to be undervalued based on its current metrics.