Is FS Bancorp, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for FS Bancorp, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its P/E ratio of 9, which is significantly lower than peers like TrustCo Bank Corp. NY with a P/E of 14.54 and Southern Missouri Bancorp, Inc. at 11.64. Additionally, the Price to Book Value stands at 0.99, and the EV to EBITDA ratio is 7.66, both suggesting that the stock may not justify its current price given the performance of its peers.
In terms of recent performance, FS Bancorp's stock has returned 35.67% over the last three years, but this is notably lower than the S&P 500's return of 76.76% during the same period, reinforcing the notion that the stock may be lagging behind broader market trends. Overall, FS Bancorp, Inc. is currently overvalued based on its valuation metrics and peer comparisons.