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

As of 12 May 2025, the valuation grade for The First Bancorp, Inc. (Maine) moved from expensive to very attractive, indicating a significant shift in its perceived value. The company is currently undervalued, supported by a P/E ratio of 10, a Price to Book Value of 1.05, and an EV to EBITDA ratio of 12.76. The dividend yield stands out at an impressive 582.84%, while the ROE is at 10.82%, suggesting strong profitability relative to shareholder equity.
In comparison to its peers, The First Bancorp, Inc. has a lower P/E ratio than Banco Latinoamericano de Comercio Exterior SA, which has a P/E of 7.5002, and Esquire Financial Holdings, Inc., which is at 16.8870. This peer comparison reinforces the undervaluation narrative, as The First Bancorp, Inc. offers a more attractive valuation profile. Additionally, while the company's stock has underperformed the S&P 500 year-to-date, it has shown resilience with a 1-year return of 7.57%, further supporting the case for its current undervaluation.