Is German American Bancorp, Inc. overvalued or undervalued?

As of 29 April 2024, German American Bancorp, Inc. has moved from a fair to an expensive valuation grade. The company appears overvalued given its P/E ratio of 19, which is significantly higher than peers such as Berkshire Hills Bancorp, Inc. at 10.31 and Byline Bancorp, Inc. at 11.72. Additionally, the EV to EBITDA ratio of 12.48 further supports this assessment, as it is elevated compared to the industry average.
With a return on equity (ROE) of 7.20% and a return on capital employed (ROCE) of 10.41%, the company's profitability metrics do not justify its current valuation. Over the past year, German American Bancorp, Inc. has returned 4.67%, underperforming the S&P 500's return of 17.14%, which reinforces the notion that the stock may be overvalued in the current market environment.