Is Old Second Bancorp, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for Old Second Bancorp, Inc. has moved from expensive to fair. The company appears fairly valued based on its current metrics. Key ratios include a P/E ratio of 10, a Price to Book Value of 1.24, and an EV to EBIT of 6.69, which suggest that the stock is reasonably priced relative to its earnings and book value.
In comparison to its peers, Old Second Bancorp's P/E ratio of 10 is lower than Inter & Co., Inc. at 18.88 and Nicolet Bankshares, Inc. at 15.08, indicating a potential undervaluation relative to these competitors. The company has also shown a 1-year return of 10.54%, which is significantly lower than the S&P 500's return of 17.14% over the same period, suggesting that while the stock is fairly valued, it may not be keeping pace with broader market performance.