Is Washington Trust Bancorp, Inc. overvalued or undervalued?

As of 29 January 2025, the valuation grade for Washington Trust Bancorp, Inc. has moved from very attractive to risky, indicating a significant deterioration in its investment appeal. The company appears to be overvalued, as evidenced by its Price to Book Value of 1.03 and negative EV to EBIT and EV to EBITDA ratios of -28.25 and -31.76, respectively. Additionally, the company has a troubling Return on Capital Employed (ROCE) of -3.58% and Return on Equity (ROE) of -4.18%, further highlighting its financial struggles.
In comparison to its peers, Washington Trust Bancorp, Inc. has a notably lower valuation profile, with CrossFirst Bankshares, Inc. showing a more attractive P/E ratio of 10.04 and Hanmi Financial Corp. at 12.92. This stark contrast suggests that Washington Trust is not only underperforming relative to its peers but also facing challenges that could hinder its recovery. Over the past year, the company's stock has declined by 7.49%, while the S&P 500 has gained 17.14%, reinforcing the notion that Washington Trust is currently overvalued in the market.