Is First BanCorp (Puerto Rico) overvalued or undervalued?

As of 17 October 2025, First BanCorp (Puerto Rico) has moved from fair to expensive in its valuation grade. The company appears overvalued based on its current metrics, with a P/E ratio of 12, a Price to Book Value of 2.03, and an EV to EBITDA of 6.63. In comparison to peers, Glacier Bancorp, Inc. has a significantly higher P/E of 26.08, while Hancock Whitney Corp. offers a more attractive P/E of 12.21, indicating that First BanCorp's valuation may not be justified relative to its competitors.
In terms of recent performance, First BanCorp has seen a YTD return of 10.70%, which lags behind the S&P 500's return of 13.30%. This trend continues over the past year, where First BanCorp's return of -4.06% contrasts sharply with the S&P 500's 14.08%, further supporting the notion that the stock may be overvalued in the current market environment.