Is First Internet Bancorp overvalued or undervalued?

As of 23 April 2025, the valuation grade for First Internet Bancorp has moved from very attractive to fair. This indicates a shift in perception regarding the company's value, suggesting it is now fairly valued. The key ratios include a P/E ratio of 10, a Price to Book Value of 0.53, and an EV to EBITDA of 11.41, which reflect a mixed performance compared to its peers.
In comparison to its peers, First Internet Bancorp's P/E ratio of 9.60 is lower than that of Colony Bankcorp, Inc. at 10.42, which is considered very attractive, and significantly lower than Community West Bancshares, which has a P/E of 27.24 and is deemed very expensive. This positioning suggests that while First Internet Bancorp is not undervalued, it is also not overvalued relative to its immediate competitors. The company's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -30.87% compared to the S&P's 2.44%, reinforcing the notion that the stock is fairly valued in the current market context.