Is Northrim BanCorp, Inc. overvalued or undervalued?

As of 23 April 2025, the valuation grade for Northrim BanCorp, Inc. has moved from attractive to fair, indicating a shift in market perception. 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 1.75, and a PEG Ratio of 0.24, which suggests that the stock may be undervalued relative to its growth prospects.
In comparison to peers, Orrstown Financial Services, Inc. has a P/E of 10.63, while Unity Bancorp, Inc. stands at 11.21, both indicating a competitive landscape. Notably, Northrim's strong ROCE of 80.55% and ROE of 15.21% highlight its efficiency and profitability relative to its peers. Over the past year, Northrim BanCorp has outperformed the S&P 500, returning 32.62% compared to the index's 17.14%, reinforcing its favorable valuation narrative.