Is The Bancorp, Inc. (Delaware) overvalued or undervalued?

As of 3 October 2025, The Bancorp, Inc. (Delaware) has moved from an expensive to a very expensive valuation grade, indicating a significant shift in its perceived value. The company appears to be overvalued, as evidenced by its P/E ratio of 11, which is below the peer average of 15.42 for similar institutions, and a Price to Book Value of 2.94, which is relatively high compared to peers like Independent Bank Corp. (Massachusetts) with a fair valuation and a P/E of 18.40. Additionally, the EV to EBITDA ratio stands at 4.42, further suggesting that the company's valuation metrics do not align favorably with its peers.
In terms of performance, The Bancorp has shown strong returns year-to-date at 44.67%, significantly outpacing the S&P 500's 14.18% during the same period, and an impressive 745.06% return over the past five years compared to the S&P 500's 100.56%. However, the recent valuation metrics and the grade change indicate that the stock may not be justified at its current price level.