Is Financial Institutions, Inc. overvalued or undervalued?

As of 30 January 2025, the valuation grade for Financial Institutions, Inc. moved from expensive to risky, indicating a shift in perception regarding its financial health. The company is currently considered overvalued, particularly given its negative P/E ratio due to losses, a Price to Book Value of 0.89, and an EV to Sales ratio of 1.53, which suggests that the market is pricing the company higher relative to its sales compared to peers.
In comparison to its peers, Financial Institutions, Inc. shows a stark contrast with Peoples Financial Services Corp., which has a P/E of 10.84 and is rated very attractive, while ACNB Corp. has a fair valuation with a P/E of 13.51. Additionally, the company's recent stock performance has lagged behind the S&P 500, with a 1-year return of 5.46% compared to the index's 17.14%, reinforcing the notion that the stock may not be a favorable investment at its current valuation.