Is Republic Bancorp, Inc. (Kentucky) overvalued or undervalued?

As of 24 April 2025, the valuation grade for Republic Bancorp, Inc. (Kentucky) has moved from attractive to very attractive, indicating a strong positive shift in its valuation outlook. The company is currently considered undervalued, with a P/E ratio of 10, significantly lower than peers such as German American Bancorp, Inc. at 18.35 and Dime Community Bancshares, Inc. at 30.55. Additionally, Republic Bancorp boasts a PEG ratio of 0.39, suggesting that its growth potential is not fully reflected in its current price.
Key financial ratios further support this valuation, with an impressive ROCE of 23.77% and an ROE of 11.41%. The company's price to book value stands at 1.18, which is competitive compared to its peers. Notably, Republic Bancorp has outperformed the S&P 500 over the past year, with a stock return of 45.37% compared to the index's 10.26%, reinforcing the notion that the stock is undervalued relative to its performance.