Is First Western Financial, Inc. overvalued or undervalued?

As of 12 September 2025, the valuation grade for First Western Financial, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. Based on the current metrics, the company appears to be undervalued. Key valuation ratios include a P/E ratio of 20, a price to book value of 0.79, and an EV to EBITDA of 0.86, all suggesting that the stock is trading at a discount relative to its earnings and asset value.
In comparison to its peers, First Western Financial has a P/E ratio of 19.60, which is significantly lower than GCM Grosvenor, Inc. at 78.97 and higher than Gladstone Capital Corp. at 7.68. This positions First Western favorably within the capital markets industry, particularly when considering its PEG ratio of 0.56, indicating potential for growth at a reasonable price. While the stock has underperformed the S&P 500 over the long term, it has shown resilience with a year-to-date return of 19.54%, outpacing the index's 12.22% return.