Is Unity Bancorp, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Unity Bancorp, Inc. moved from very attractive to attractive. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 11, a Price to Book Value of 1.51, and a PEG Ratio of 0.87, which suggest that the stock is reasonably priced compared to its earnings growth potential.
In comparison to peers, Bridgewater Bancshares, Inc. has a P/E of 11.97, while Home Bancorp, Inc. shows a lower P/E of 10.68, indicating that Unity's valuation is competitive within its sector. Despite a recent decline in short-term returns, Unity has outperformed the S&P 500 over the longer term, with a 1-year return of 49.38% compared to the S&P 500's 17.82%, and a remarkable 5-year return of 300.75% against the S&P 500's 100.56%.