Is Union Bankshares, Inc. (Vermont) overvalued or undervalued?

As of 7 April 2025, the valuation grade for Union Bankshares, Inc. (Vermont) has moved from very attractive to very expensive. This indicates that the company is currently overvalued. The P/E ratio stands at 16, which is higher than peers such as FinWise Bancorp at 14.89 and First United Corp. at 8.17, suggesting a significant premium for Union Bankshares. Additionally, the EV to EBITDA ratio of 43.66 further emphasizes this overvaluation compared to the industry standards.
In terms of performance, the company's return on equity (ROE) is 12.72%, while its return on capital employed (ROCE) is notably low at 2.33%. These figures, combined with a price to book value of 2.05, reflect a concerning valuation relative to its earnings and asset base. Over the past year, Union Bankshares has outperformed the S&P 500 with a return of 16.17%, but its recent stock performance has lagged behind the index over shorter time frames, reinforcing the notion that the current valuation may not be justified.