Is First Busey Corp. overvalued or undervalued?

As of 4 March 2025, the valuation grade for First Busey Corp. has moved from fair to expensive, indicating that the company is overvalued. The current P/E ratio stands at 36, 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, First Busey Corp.'s EV to EBITDA ratio is 13.90, while its EV to Capital Employed is 0.93, suggesting a premium valuation compared to its industry counterparts.
In terms of financial performance, First Busey Corp. has a ROE of 2.64% and a ROCE of 5.11%, which are relatively low, further supporting the notion of overvaluation. The stock has shown a return of 2.14% over the past year, which lags behind the S&P 500's return of 10.26%, reinforcing the view that the stock may not justify its current price level. Overall, First Busey Corp. appears to be overvalued based on its valuation metrics and peer comparisons.