Is Primis Financial Corp. overvalued or undervalued?

As of 26 October 2023, Primis Financial Corp. has moved from a fair to a risky valuation grade. The company is currently deemed overvalued, primarily due to its high P/E ratio of 40, which significantly exceeds the industry average. Additionally, the PEG ratio stands at an exceptionally low 0.11, indicating potential overvaluation relative to growth expectations. The company also shows a negative ROCE of -12.28% and a modest ROE of 1.60%, further highlighting its financial struggles.
In comparison to peers, Bank7 Corp. has a fair valuation with a P/E ratio of 8.01, while Southern States Bancshares, Inc. is rated very attractive with a P/E of 9.13. These comparisons underscore Primis Financial Corp.'s elevated valuation metrics. Despite a recent uptick in stock price, with a 1-week return of 4.53% compared to a slight decline in the S&P 500, the overall financial indicators suggest that the company remains overvalued in the current market context.