Is Midland States Bancorp, Inc. overvalued or undervalued?

As of 29 April 2025, the valuation grade for Midland States Bancorp, Inc. moved from expensive to very attractive, indicating a significant shift in its perceived value. The company appears undervalued, particularly given its Price to Book Value of 0.49, an EV to Capital Employed ratio of 0.63, and an extraordinary Dividend Yield of 372.43%. In comparison to peers, Midland's valuation stands out, with CrossFirst Bankshares, Inc. at a P/E of 10.04 and Mercantile Bank Corp. at a P/E of 9.69, suggesting that Midland may offer a more compelling investment opportunity.
Despite recent performance struggles, with a year-to-date return of -24.22% compared to the S&P 500's 12.22%, the long-term potential remains evident, as evidenced by a 5-year return of 30.95%. This combination of attractive valuation ratios and a favorable grade change supports the conclusion that Midland States Bancorp, Inc. is currently undervalued.