Is FS Bancorp, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for FS Bancorp, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 9, a Price to Book Value of 0.99, and an EV to EBITDA ratio of 7.66. In comparison to peers, TrustCo Bank Corp. NY has a P/E ratio of 14.54, while Southern Missouri Bancorp, Inc. boasts a P/E of 11.64, indicating that FS Bancorp is trading at a lower valuation relative to some of its competitors.
In terms of performance, FS Bancorp's stock has returned 47.10% over the last three years, which is below the S&P 500's return of 70.41% during the same period. This suggests that while the stock is fairly valued, it has underperformed compared to the broader market.