Is MidWestOne Financial Group, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for MidWestOne Financial Group, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 1.08 and a negative EV to EBIT of -5.55, which suggests significant operational challenges. Additionally, the Return on Capital Employed (ROCE) stands at -19.99%, further highlighting the company's struggles in generating returns.
In comparison to its peers, Five Star Bancorp has a P/E ratio of 13.58, while Shore Bancshares, Inc. is rated attractive with a P/E of 10.56, indicating that MidWestOne is lagging behind in terms of profitability and valuation metrics. Notably, the company's stock has outperformed the S&P 500 in the short term, with a year-to-date return of 35.78% compared to the S&P 500's 15.47%, but this does not mitigate the concerns raised by its valuation ratios.