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. The company appears overvalued based on its current valuation metrics. The P/E ratio stands at 12, while the industry average is higher, indicating a premium valuation. Additionally, the price to book value is 2.03, and the PEG ratio is 2.20, both suggesting that the stock may be overvalued relative to its growth prospects.
In comparison to its peers, Glacier Bancorp, Inc. has a significantly higher P/E ratio of 26.08, while Hancock Whitney Corp. is more attractively valued at a P/E of 12.21. This positions First BanCorp in a less favorable light among its competitors. Over the past year, First BanCorp has underperformed the S&P 500, with a return of -4.06% compared to the index's 14.08%, reinforcing the notion that the stock may not be a compelling investment at its current valuation.