Is OP Bancorp overvalued or undervalued?

As of 21 October 2024, OP Bancorp's valuation grade has moved from very attractive to fair, indicating a shift in its market perception. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 9, a Price to Book Value of 0.87, and an EV to EBIT of 1.44, which suggest that the company is trading at a reasonable valuation compared to its earnings and asset base.
In terms of peer comparison, OP Bancorp's P/E ratio of 9 is significantly lower than that of ChoiceOne Financial Services, Inc. at 16.34, and Community West Bancshares at 27.24, both of which are considered expensive. Additionally, Penns Woods Bancorp, Inc. is deemed attractive with a P/E of 10.14, further supporting the notion that OP Bancorp is fairly valued relative to its peers. Notably, while OP Bancorp has underperformed the S&P 500 year-to-date with a return of -24.86% compared to the index's 2.44%, it has shown a strong one-year return of 26.25%, suggesting potential for recovery.