Is Finward Bancorp overvalued or undervalued?

As of 17 October 2025, the valuation grade for Finward Bancorp has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation relative to its peers. The company appears overvalued based on its current metrics, particularly with a P/E ratio of 39, which is significantly higher than the peer average of 26.38 for Western New England Bancorp, Inc. and 23.54 for ESSA Bancorp, Inc. Additionally, the Price to Book Value stands at 0.85, suggesting that the market is valuing the company below its book value, but this is offset by the high EV to EBITDA ratio of 37.75.
In comparison to the S&P 500, Finward Bancorp's stock has shown mixed performance, with a year-to-date return of 15.12% compared to the S&P 500's 13.30%. However, over longer periods, such as three and five years, the company has underperformed significantly, with returns of -2.53% and 1.12%, respectively, compared to the S&P 500's much stronger performance. Overall, while there are some positive indicators, the high valuation ratios and underwhelming long-term performance suggest that Finward Bancorp is overvalued in the current market environment.