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

As of 24 October 2025, the valuation grade for Fidelity D&D Bancorp, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears undervalued, supported by a P/E ratio of 11, a Price to Book Value of 1.12, and a PEG ratio of 0.33, all of which suggest it is trading at a discount compared to its earnings growth potential. In comparison, peers such as ACNB Corp. have a higher P/E ratio of 13.51, while Home Bancorp, Inc. boasts a PEG ratio of 0.75, further highlighting Fidelity D&D Bancorp's relative undervaluation.
Despite the attractive valuation metrics, the company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -8.30% compared to the index's 15.47%. This underperformance over multiple periods, including a 1-year return of -13.94% versus the S&P 500's 16.90%, suggests that while the stock may be undervalued, it faces challenges in market sentiment.