Is First Foundation, Inc. overvalued or undervalued?

As of 29 October 2024, the valuation grade for First Foundation, Inc. has moved from fair to risky, indicating a significant deterioration in its financial standing. The company is currently considered overvalued, particularly given its negative performance metrics. The P/E ratio is not applicable due to the company being loss-making, while the Price to Book Value stands at 0.41, and the EV to EBITDA is at 0.66, both suggesting a lack of financial health.
In comparison to its peers, First Foundation, Inc. has a notably lower valuation profile. For instance, Burke Herbert Financial Services Corp. is categorized as very expensive with a P/E of 15.15, while Northeast Bank (Maine) is considered very attractive with a P/E of 8.86. Additionally, First Foundation's ROE is at -8.14%, reflecting ongoing challenges in generating returns. The company's stock has underperformed significantly against the S&P 500, with a year-to-date return of -16.91% compared to the index's 2.44%.