Is Unity Bancorp, Inc. overvalued or undervalued?

As of 11 July 2025, the valuation grade for Unity Bancorp, Inc. has moved from attractive to very attractive, indicating a strong positive outlook. The company appears to be undervalued, supported by a P/E ratio of 11, a PEG ratio of 0.87, and an EV to EBITDA ratio of 8.33. In comparison to peers, Home Bancorp, Inc. has a P/E of 10.68, while Bridgewater Bancshares, Inc. stands at 11.97, suggesting Unity's valuation is competitive within the regional banks sector.
Recent stock performance further reinforces this valuation perspective, with Unity Bancorp achieving a 57.88% return over the past year, significantly outperforming the S&P 500's 17.14% return. This strong performance, coupled with favorable valuation metrics, supports the conclusion that Unity Bancorp is indeed undervalued in the current market.