Is OFG Bancorp overvalued or undervalued?

As of 31 October 2025, the valuation grade for OFG Bancorp has moved from attractive to very attractive. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 12, a Price to Book Value of 1.77, and an EV to EBITDA of 7.42, which suggest that the stock is trading at a discount compared to its peers.
In comparison to its industry, OFG Bancorp's P/E ratio is lower than that of Axos Financial, Inc. at 13.92, while it is significantly lower than Associated Banc-Corp, which has a P/E of 33.17. Additionally, the PEG ratio of 1.60 indicates a favorable growth outlook relative to its price. Despite recent underperformance with a YTD return of -6.62% compared to the S&P 500's 16.30%, the long-term performance shows a strong 5Y return of 152.52%, suggesting potential for recovery and growth.