Is Independent Bank Corp. (Michigan) overvalued or undervalued?

Sep 20 2025 05:27 PM IST
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As of July 24, 2025, Independent Bank Corp. (Michigan) is considered overvalued with a valuation grade shift to expensive, reflected by a P/E ratio of 10 compared to peer averages, and underperformance against the S&P 500 with year-to-date and one-year returns of -8.21% and -6.79%, respectively.
As of 24 July 2025, the valuation grade for Independent Bank Corp. (Michigan) has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently considered overvalued based on its P/E ratio of 10, which is lower than the peer average of approximately 11.68 for Camden National Corp. (Maine) and 12.14 for South Plains Financial, Inc. (Texas). Additionally, the Price to Book Value stands at 1.39, and the EV to EBIT ratio is 8.37, both suggesting that the stock may not be justified at its current price level.

In terms of performance, Independent Bank Corp. has underperformed relative to the S&P 500, with a year-to-date return of -8.21% compared to the S&P 500's 12.22%. This trend is further emphasized by a one-year return of -6.79% against the S&P 500's 17.14%, reinforcing the notion that the stock is currently overvalued.
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