Is RBB Bancorp overvalued or undervalued?

As of 7 July 2025, RBB Bancorp's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 14, a price-to-book value of 0.59, and an EV to EBITDA ratio of 13.94. In comparison to peers, ACNB Corp. has a P/E ratio of 13.51, while Bridgewater Bancshares, Inc. shows a lower P/E of 11.97, suggesting that RBB Bancorp is competitively positioned within its industry.
Despite its fair valuation, RBB Bancorp has underperformed against the S&P 500 over various time frames, notably with a year-to-date return of -2.59% compared to the S&P 500's 12.22%. Additionally, the one-year return of -14.26% starkly contrasts with the S&P 500's 17.14%, highlighting a significant lag in performance. Overall, while RBB Bancorp is fairly valued, its recent stock performance raises concerns about its growth prospects relative to the broader market.