Is Financial Institutions, Inc. overvalued or undervalued?

As of 30 January 2025, the valuation grade for Financial Institutions, Inc. has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently considered overvalued, particularly given its troubling financial ratios. The Price to Book Value stands at 0.89, while the EV to EBIT and EV to EBITDA ratios are at -13.82 and -16.51, respectively, reflecting substantial operational losses.
In comparison to its peers, Financial Institutions, Inc. shows stark contrasts; for instance, Peoples Financial Services Corp. has a P/E ratio of 13.04, while ACNB Corp. is at 12.72, both indicating a more favorable valuation. The company's recent stock performance has been mixed, with a 1-year return of 45.49%, significantly outpacing the S&P 500's 10.26% return, yet the year-to-date performance of -7.18% suggests underlying weaknesses that may not be sustainable. Overall, the financial metrics and peer comparisons strongly suggest that Financial Institutions, Inc. is overvalued at its current price of 25.33.