Is Heritage Commerce Corp. overvalued or undervalued?

As of 1 August 2025, the valuation grade for Heritage Commerce Corp. moved from fair to very attractive, indicating a positive shift in its valuation outlook. The company is currently considered undervalued. Key ratios include a P/E ratio of 14, a price to book value of 0.84, and an EV to Capital Employed of 3.78. In comparison, Premier Financial Corp. has a P/E ratio of 14.14, while Great Southern Bancorp, Inc. shows a more attractive P/E of 10.58, highlighting Heritage's relative positioning in the market.
Despite the recent stock performance, where Heritage Commerce Corp. returned 3.27% over the past year compared to the S&P 500's 17.14%, the company's valuation metrics suggest it is trading at a discount relative to its peers. This reinforces the notion that Heritage Commerce Corp. presents a compelling investment opportunity at its current price of 10.42.