Is First Business Financial Services, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for First Business Financial Services, Inc. moved from attractive to very attractive. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 10, a Price to Book Value of 1.31, and an impressive PEG Ratio of 0.37, indicating strong growth potential relative to its price.
In comparison to peers, First Business Financial Services, Inc. has a lower P/E ratio than ACNB Corp. at 12.72 and Bridgewater Bancshares, Inc. at 11.78, both of which are categorized as expensive or fair. Additionally, the company boasts a high dividend yield of 204.22% and a ROCE of 15.14%, further supporting its undervaluation. Notably, the stock has outperformed the S&P 500 over the past year, returning 43.45% compared to the index's 10.26%, reinforcing the attractiveness of the current valuation.