Is First Western Financial, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for First Western Financial, Inc. has moved from fair to very attractive. The company appears to be undervalued based on its strong valuation metrics, including a P/E ratio of 20, a price to book value of 0.79, and an EV to EBITDA of 0.86. In comparison to peers, Gladstone Capital Corp. has a P/E of 7.68, while BlackRock Capital Investment Corp. shows a P/E of 10.18, indicating that First Western Financial, Inc. is trading at a premium relative to some of its peers.
Despite recent stock performance showing a 1Y return of 17.86% compared to the S&P 500's 17.82%, the longer-term perspective reveals a concerning 3Y return of -8.92% against the S&P 500's 82.57%. This suggests that while the company is currently undervalued, it has struggled in the past few years relative to broader market performance.