Is MidWestOne Financial Group, Inc. overvalued or undervalued?

As of 24 October 2024, the valuation grade for MidWestOne Financial Group, Inc. has moved from expensive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued based on its financial ratios, particularly with a Price to Book Value of 1.08, an EV to EBIT of -5.55, and an EV to EBITDA of -6.47. These negative figures suggest that the company is struggling to generate positive earnings and may face challenges in its operational efficiency.
When compared to peers, MidWestOne Financial Group's valuation appears unfavorable. For instance, Burke Herbert Financial Services Corp. has a P/E ratio of 15.15, while Mid Penn Bancorp, Inc. stands at 11.94, both indicating more favorable valuations within the sector. Additionally, the company's recent stock performance shows a 1-year return of 38.91%, which outperforms the S&P 500's 10.26% return, but this does not sufficiently mitigate the concerns raised by its current financial ratios. Overall, the combination of negative earnings ratios and unfavorable peer comparisons suggests that MidWestOne Financial Group is overvalued at its current price of 28.42.