Is Heritage Financial Corp. (Washington) overvalued or undervalued?

As of 26 September 2025, the valuation grade for Heritage Financial Corp. (Washington) moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 15, a Price to Book Value of 0.90, and an EV to EBITDA ratio of 12.94. In comparison, Banc of California, Inc. has a P/E of 18.08, while Republic Bancorp, Inc. (Kentucky) shows a lower P/E of 10.77, highlighting Heritage's relative attractiveness in the regional banks sector.
Despite the recent stock performance, where Heritage Financial Corp. returned 1.43% year-to-date compared to the S&P 500's 12.96%, the company's valuation metrics suggest it is positioned well for future growth. The combination of its attractive valuation ratios and the favorable grade change supports the conclusion that it is currently undervalued.