Is Peoples Financial Services Corp. overvalued or undervalued?

As of 5 May 2025, the valuation grade for Peoples Financial Services Corp. has moved from very expensive to expensive, indicating a shift towards a less extreme valuation but still suggesting that the company is on the higher end of the valuation spectrum. The company is currently considered overvalued. Key ratios include a P/E ratio of 14, a Price to Book Value of 1.01, and an EV to EBITDA of 12.14, which are relatively high compared to its peers.
In comparison, Mid Penn Bancorp, Inc. has a P/E ratio of 11.94 and is rated fairly valued, while Macatawa Bank Corp. has a P/E of 12.42 and is also considered expensive. The PEG ratio for Peoples Financial is notably high at 4.19, further supporting the conclusion of overvaluation. Additionally, while the stock has outperformed the S&P 500 over the past year with a return of 22.84% compared to 10.26%, the longer-term performance shows a decline of 8.30% over three years versus the S&P's 58.74%, highlighting potential concerns about sustainability at its current valuation.