Is MetroCity Bankshares, Inc. overvalued or undervalued?

As of 24 June 2025, the valuation grade for MetroCity Bankshares, Inc. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 11, a Price to Book Value of 1.67, and a PEG Ratio of 0.36, which suggest that while the stock is reasonably priced, it may not offer significant upside potential compared to its peers.
In comparison to its peers, CrossFirst Bankshares, Inc. has a more attractive P/E ratio of 10.04, while Mercantile Bank Corp. is also fairly valued with a P/E of 9.69. Notably, MetroCity's dividend yield of 152.49% stands out, although this figure should be interpreted cautiously given the overall context. Over the past year, MetroCity's stock has returned -4.25%, underperforming the S&P 500's 17.14%, which further supports the notion that the stock is fairly valued in the current market environment.