Is FinWise Bancorp overvalued or undervalued?

As of 1 October 2024, FinWise Bancorp's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its P/E ratio of 16, which is higher than peers like LINKBANCORP, Inc. with a P/E of 6.92 and First United Corp. at 8.17, suggesting that FinWise may not be as appealing as its competitors. Additionally, the company shows a low ROE of 6.85% and a troubling ROCE of -19.21%, which raises concerns about its profitability and efficiency.
In comparison to its peers, FinWise Bancorp's valuation metrics do not stand out favorably, especially when considering the EV to EBIT and EV to EBITDA ratios, which are negative at -3.94 and -2.67, respectively. This underperformance, along with a year-to-date return of -13.52% compared to the S&P 500's 2.44%, reinforces the notion that the stock is fairly valued at its current price of 13.82, especially given the broader market context.