Is Shore Bancshares, Inc. overvalued or undervalued?

As of 24 July 2025, the valuation grade for Shore Bancshares, Inc. has moved from very attractive to attractive, indicating a shift in its perceived value. The company appears to be undervalued, given its P/E ratio of 10, which is lower than the average P/E of its peers, such as CNB Financial Corp. at 13.93 and HomeTrust Bancshares at 12.77. Additionally, Shore Bancshares has a price-to-book value of 0.89 and an EV to EBITDA ratio of 2.92, both suggesting that the stock is trading at a discount relative to its assets and earnings potential.
In terms of performance, Shore Bancshares has delivered a 22.03% return over the past year, outperforming the S&P 500's 17.14% return, although it has lagged over longer periods, such as the three-year return of -5.62% compared to the S&P 500's 70.41%. With a PEG ratio of 0.19 and a robust dividend yield of 322.10%, Shore Bancshares, Inc. presents an attractive investment opportunity amidst its peer group.