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

As of 3 October 2025, the valuation grade for Heritage Financial Corp. (Washington) moved from fair to attractive, indicating a shift in perception towards the stock's value. 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 of 12.94. In comparison to peers, Banc of California, Inc. has a higher P/E of 18.08, while Republic Bancorp, Inc. shows a lower P/E of 10.77, highlighting Heritage's relative attractiveness in the market.
Despite recent challenges, including a 3-year stock return of -8.87% compared to the S&P 500's 82.57%, the one-year return of 16.96% shows potential for recovery, albeit slightly lagging behind the S&P 500's 17.82%. Overall, the metrics suggest that Heritage Financial Corp. is positioned favorably within its industry, making it an appealing investment opportunity.