Is FS Bancorp, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for FS Bancorp, Inc. moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 9, which is lower than the peer average of approximately 11.64 for Southern Missouri Bancorp, Inc. and 14.54 for TrustCo Bank Corp. NY. Additionally, the Price to Book Value stands at 0.99, suggesting the stock is trading close to its book value, while the EV to EBITDA ratio of 7.66 further supports the notion of overvaluation compared to peers.
In the context of its industry, FS Bancorp, Inc. has a ROE of 11.41% and a ROCE of 7.95%, which are respectable but do not justify its current price level when compared to peers like Northfield Bancorp, Inc., which has a higher valuation and performance metrics. Although specific return data is not available, the absence of a strong return narrative against the S&P 500 reinforces the view that the stock may not be a compelling investment at this price point.