Is MetroCity Bankshares, Inc. overvalued or undervalued?

As of 13 June 2025, the valuation grade for MetroCity Bankshares, Inc. moved from fair to attractive, indicating a more favorable assessment of its value. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 11, a Price to Book Value of 1.67, and a PEG ratio of 0.36, which suggests that the stock is trading at a discount relative to its growth prospects.
In comparison to its peers, MetroCity Bankshares has a P/E ratio that is higher than Amalgamated Financial Corp. at 8.68 but lower than Univest Financial Corp. at 11.38, indicating a competitive position within the industry. The company's strong ROCE of 17.34% and a remarkable dividend yield of 152.49% further support the attractiveness of its valuation. Notably, while the stock has underperformed the S&P 500 year-to-date, it has delivered a solid 12.80% return over the past year, reinforcing the potential for future growth.