Is Five Star Bancorp overvalued or undervalued?

As of 3 October 2025, the valuation grade for Five Star Bancorp has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 12, which is lower than the peer average of approximately 13.6, and its EV to EBITDA ratio of 2.85, which is also higher than some peers like HomeTrust Bancshares at 12.77. Additionally, the Price to Book Value stands at 1.46, suggesting that the stock may not be priced attractively relative to its book value.
In comparison to its peers, CNB Financial Corp. has a P/E of 13.93, while SmartFinancial, Inc. is valued attractively with a P/E of 15.30. Despite a positive year-to-date return of 6.58%, Five Star Bancorp's performance lags behind the S&P 500's return of 14.18%, further reinforcing the notion that the stock may be overvalued in the current market context.