Is Finward Bancorp overvalued or undervalued?

As of 17 October 2025, the valuation grade for Finward Bancorp moved from very expensive to expensive. The company appears to be overvalued based on its current P/E ratio of 39, which is significantly higher than the peer average of 26.38, and its EV to EBITDA ratio of 37.75, indicating a premium valuation compared to peers like Western New England Bancorp, which has a P/E of 20.74, and ESSA Bancorp, which stands at 23.54. Additionally, the Price to Book Value of 0.85 suggests that the stock is priced below its book value, but the negative ROCE of -2.01% raises concerns about profitability.
In terms of recent performance, Finward Bancorp has shown a 15.12% return year-to-date, slightly outperforming the S&P 500's 13.30%. However, over longer periods, the stock has underperformed, with a 3-year return of -2.53% compared to the S&P 500's 81.19%. Overall, while there are some positive short-term returns, the valuation metrics suggest that Finward Bancorp is overvalued relative to its peers and the broader market.