Is OFG Bancorp overvalued or undervalued?

As of 31 October 2025, the valuation grade for OFG Bancorp has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company appears undervalued, supported by a P/E ratio of 12, a Price to Book Value of 1.77, and an EV to EBITDA ratio of 7.42. In comparison to peers, Axos Financial, Inc. has a higher P/E ratio of 13.92, while Fulton Financial Corp. also shows a very attractive valuation with a P/E of 13.49.
Despite recent underperformance against the S&P 500, with a YTD return of -8.65% compared to the index's 16.30%, the long-term outlook remains strong, as evidenced by a 5-year return of 168.66%, outperforming the S&P 500's 109.18% over the same period. This suggests that while short-term fluctuations may be concerning, the overall valuation metrics indicate that OFG Bancorp is positioned favorably in the market.