Is Lakeland Financial Corp. (Indiana) overvalued or undervalued?

As of 24 January 2025, the valuation grade for Lakeland Financial Corp. (Indiana) has moved from expensive to very expensive. The company is currently overvalued based on its financial ratios. The P/E ratio stands at 17, while the industry average P/E is approximately 16.85, indicating a slight premium. Additionally, the Price to Book Value is 2.26, and the EV to EBITDA ratio is 13.17, both of which suggest that the stock is trading at a higher valuation compared to its peers.
In comparison to its peers, Renasant Corp. has a more attractive valuation with a P/E of 16.22, while WesBanco, Inc. is considered fair with a P/E of 23.62. Furthermore, Lakeland's recent stock performance has been underwhelming, with a year-to-date return of -12.87% compared to a 2.44% gain in the S&P 500, reinforcing the notion that the stock may be overvalued in the current market environment.