Is Southern First Bancshares, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Southern First Bancshares, Inc. has moved from fair to attractive, indicating a shift towards a more favorable assessment. The company appears to be undervalued, particularly when considering its P/E ratio of 16, which is lower than the peer average of approximately 16.87, and a PEG ratio of 0.44, suggesting strong growth potential relative to its price. Additionally, the Price to Book Value stands at 0.87, further supporting the undervaluation thesis.
In comparison to its peers, Orrstown Financial Services, Inc. has a P/E of 10.63, while Unity Bancorp, Inc. boasts a very attractive valuation with an EV to EBITDA of 11.21. Despite recent underperformance against the S&P 500 over the past week and month, Southern First Bancshares has shown solid returns over the longer term, with a 1-year return of 31.54% compared to the S&P 500's 17.82%. This longer-term performance reinforces the notion that the stock is currently undervalued.