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 overvalued based on its current metrics, with a P/E ratio of 9, which is lower than the peer average of approximately 14.54 for TrustCo Bank Corp. NY, but significantly lower than the very attractive Southern Missouri Bancorp, Inc. at 11.64. Additionally, FS Bancorp's price to book value stands at 0.99, suggesting it is trading close to its book value, while its EV to EBITDA ratio of 7.66 is also lower than many peers, indicating potential concerns about future growth.
In comparison to its peers, FS Bancorp's valuation metrics suggest it is less attractive than several competitors, such as Northfield Bancorp, Inc. at a P/E of 19.23 and Kearny Financial Corp. at 17.05, both categorized as very attractive. Although specific return data is unavailable, the lack of recent performance metrics against the S&P 500 may reinforce the notion that FS Bancorp is not keeping pace with broader market expectations.