Is OFG Bancorp overvalued or undervalued?

As of 21 November 2025, the valuation grade for OFG Bancorp has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. The company appears undervalued, with a P/E ratio of 12, a Price to Book Value of 1.77, and an EV to EBITDA of 7.42. In comparison to peers, Axos Financial, Inc. has a higher P/E of 13.92, while Fulton Financial Corp. shows a similar valuation grade with a P/E of 13.49.
Despite recent challenges, including a year-to-date return of -7.18% compared to the S&P 500's 12.26%, OFG Bancorp has demonstrated strong long-term performance with a 5-year return of 115.47%, outpacing the S&P 500's 85.61%. This combination of strong valuation metrics and favorable long-term returns supports the conclusion that OFG Bancorp is currently undervalued.