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

As of 28 November 2025, the valuation grade for Franklin Financial Services Corp. (Pennsylvania) moved from fair to expensive. The company appears overvalued based on its current metrics, particularly with a P/E ratio of 15, which is higher than peers such as ChoiceOne Financial Services, Inc. at 14.27 and First Community Corp. at 12.18. Additionally, the EV to EBITDA ratio stands at 11.06, further indicating a premium valuation compared to the industry.
In terms of performance, Franklin Financial has demonstrated strong returns, with a year-to-date return of 78.96%, significantly outpacing the S&P 500's 16.45%. However, the long-term perspective shows that over the past 10 years, the company's return of 79.93% lags behind the S&P 500's impressive 227.69%. Overall, the combination of high valuation ratios and mixed performance against the benchmark suggests that the stock is currently overvalued.