Is First Interstate BancSystem, Inc. overvalued or undervalued?

As of 15 March 2023, the valuation grade for First Interstate BancSystem, Inc. moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, supported by a P/E ratio of 13, a price-to-book value of 0.87, and an EV to EBITDA ratio of 12.84. These metrics suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, First Interstate BancSystem's P/E ratio is lower than that of United Bankshares, Inc. at 13.75 and significantly lower than Glacier Bancorp, Inc. at 21.12, which is categorized as very expensive. Additionally, the dividend yield of 5.10% is attractive in the current market environment. While the stock has underperformed the S&P 500 year-to-date, its recent valuation metrics indicate that it presents a compelling investment opportunity relative to its peers.