Is Finward Bancorp overvalued or undervalued?

As of 30 April 2025, the valuation grade for Finward Bancorp has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its high P/E ratio of 39, compared to peers such as Western New England Bancorp, Inc. with a P/E of 20.74 and ESSA Bancorp, Inc. at 23.54. Additionally, the EV to EBITDA ratio stands at 37.75, further suggesting that the stock is priced at a premium relative to its earnings potential.
Finward Bancorp's Price to Book Value of 0.85 is relatively low, but this is overshadowed by its negative ROCE of -2.01% and a modest ROE of 2.18%. The company has underperformed significantly over the long term, with a 3-year return of -12.90% compared to the S&P 500's 70.41%, reinforcing the notion that it is currently overvalued.