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 valuation outlook. The company appears 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. In comparison to peers, Columbia Banking System, Inc. has a P/E of 13.84, while Synovus Financial Corp. shows a more attractive P/E of 10.78, highlighting First Interstate's competitive positioning in the regional banks sector.
Despite a year-to-date return of 4.22%, which lags behind the S&P 500's 12.22%, the company's strong dividend yield of 5.10% and improving valuation metrics suggest that it may have room for growth moving forward.