Is First Bancorp (North Carolina) overvalued or undervalued?

As of 22 January 2025, First Bancorp (North Carolina) has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial metrics. The P/E ratio stands at 20, which is significantly higher than its peers such as Heartland Financial USA, Inc. with a P/E of 15.43 and Stock Yards Bancorp, Inc. at 17.74. Additionally, the EV to EBITDA ratio of 8.98 further supports this overvaluation perspective when compared to peers like Enterprise Financial Services Corp. which has an EV to EBITDA of 10.38.
Other notable ratios include a Price to Book Value of 1.14 and a ROE of 5.76%. The company's recent stock performance has shown a 1-year return of 38.39%, outperforming the S&P 500's 10.26% return, but this does not mitigate the valuation concerns. Overall, First Bancorp appears to be overvalued relative to its industry and peer comparisons.