Is Five Star Bancorp overvalued or undervalued?

As of 12 July 2024, the valuation grade for Five Star Bancorp has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a P/E ratio of 12, a Price to Book Value of 1.46, and an EV to EBITDA of 2.85.
In comparison to its peers, Five Star Bancorp's P/E ratio is lower than that of Burke Herbert Financial Services Corp., which stands at 15.15, and slightly higher than Equity Bancshares, Inc. at 12.08. Additionally, Northeast Bank (Maine) is noted as very attractive with a P/E of 8.86, indicating that Five Star Bancorp may not be the most favorable investment in its sector. While the stock has shown a 21.48% return over the past year, it has underperformed compared to the S&P 500's 10.26% return, reinforcing the notion that the stock may be overvalued at its current price of 27.71.