Is German American Bancorp, Inc. overvalued or undervalued?

As of 12 May 2025, the valuation grade for German American Bancorp, Inc. has moved from very expensive to expensive. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 19, which is significantly higher than its peers, such as Veritex Holdings, Inc. with a P/E of 13.04 and Berkshire Hills Bancorp, Inc. at 10.45. Additionally, the Price to Book Value is 1.37, and the EV to EBITDA ratio is 12.48, further indicating that the company's valuation is on the higher side compared to its industry counterparts.
In comparison to the broader market, German American Bancorp, Inc. has shown a mixed performance with a year-to-date return of -5.92%, while the S&P 500 has returned 2.44% in the same period. This underperformance, coupled with its expensive valuation metrics, suggests that investors may want to exercise caution. Overall, the analysis indicates that German American Bancorp, Inc. is overvalued in the current market environment.