Is Franklin Financial Services Corp. (Pennsylvania) overvalued or undervalued?

As of 28 November 2025, the valuation grade for Franklin Financial Services Corp. has moved from fair to expensive. The company appears to be overvalued based on its current metrics, including a P/E ratio of 15, a Price to Book Value of 1.14, and an EV to EBITDA of 11.06. In comparison to peers, ChoiceOne Financial Services, Inc. has a P/E of 14.27, while First Community Corp. (South Carolina) shows a P/E of 12.18, indicating that Franklin is priced higher than some of its competitors.
Despite the overvaluation, Franklin Financial has shown strong performance, with a year-to-date return of 78.96%, significantly outpacing the S&P 500's return of 16.45% during the same period. However, over the longer term, its 10-year return of 79.93% lags behind the S&P 500's impressive 227.69%, suggesting potential concerns about sustainability in its valuation.