Is Finward Bancorp overvalued or undervalued?

As of 17 October 2025, Finward Bancorp's valuation grade has moved from very expensive to expensive, indicating a slight improvement but still suggesting that the stock is overvalued. The company is currently assessed as overvalued based on its high P/E ratio of 39, which is significantly above the industry average, and an EV to EBITDA ratio of 37.75, further supporting this valuation perspective. Additionally, the Price to Book Value stands at 0.85, which, while below 1, does not compensate for the elevated earnings multiples.
In comparison to its peers, Finward Bancorp's P/E ratio is higher than Western New England Bancorp, Inc. at 20.74 and ESSA Bancorp, Inc. at 23.54, both of which are also considered expensive but with lower valuations. The company's recent stock performance shows a 1-week return of 4.83% compared to the S&P 500's 1.70%, and a year-to-date return of 15.12% against the S&P 500's 13.30%, indicating some relative strength, but this does not alter the overall valuation conclusion.