Is Norwood Financial Corp. overvalued or undervalued?

As of 30 June 2025, Norwood Financial Corp. has moved from an expensive to a very expensive valuation grade. The company appears to be overvalued based on its current metrics. Notable valuation ratios include a P/E ratio of 204, an EV to EBITDA of 193.98, and a Price to Book Value of 1.09, which significantly exceed industry norms.
In comparison to peers, Orrstown Financial Services, Inc. has a P/E of 10.63, while Northrim BanCorp, Inc. stands at 11.11, highlighting the substantial premium Norwood is trading at. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -2.15% compared to the S&P 500's 12.22%, suggesting that the market may be reacting negatively to its high valuation.