Is First BanCorp (Puerto Rico) overvalued or undervalued?

As of 17 October 2025, the valuation grade for First BanCorp (Puerto Rico) has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 12, which is lower than the peer average of approximately 12.68, and its Price to Book Value of 2.03, which is higher than many peers. Additionally, the EV to EBITDA ratio stands at 6.63, suggesting that the company's valuation is not as attractive compared to its peers.
In the peer comparison, Hancock Whitney Corp. has a P/E of 12.21, while United Bankshares, Inc. shows a P/E of 14.22, both indicating that First BanCorp is priced higher relative to its earnings potential. Furthermore, the company has underperformed the S&P 500 over the past year with a return of -4.06% compared to the index's 14.08%, although it has shown strong performance over the past five years with a return of 241.29%. This mixed performance reinforces the notion that First BanCorp is currently overvalued.