Is Finward Bancorp overvalued or undervalued?

As of 3 October 2025, the valuation grade for Finward Bancorp has moved from expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 39, a Price to Book Value of 0.85, and an EV to EBITDA of 37.75. In comparison, peers such as ESSA Bancorp, Inc. have a P/E of 23.54, while First Capital, Inc. stands out with an attractive P/E of 12.46.
Recent stock performance shows that Finward Bancorp has underperformed relative to the S&P 500, with a year-to-date return of 13.02% compared to the S&P 500's 14.18%. This trend is further highlighted over the longer term, where the company has a 3-year return of -7.87% against the S&P 500's impressive 82.57%.