Is West Bancorporation, Inc. overvalued or undervalued?

As of 4 September 2025, the valuation grade for West Bancorporation, Inc. moved from fair to very attractive, indicating a significant improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 12, a PEG ratio of 0.72, and an EV to EBITDA ratio of 15.57. In comparison to its peers, West Bancorporation's P/E ratio of 11.85 is lower than that of Macatawa Bank Corp., which has a P/E of 12.42, and ACNB Corp. at 13.51, suggesting that West Bancorporation is priced more favorably in the market. While specific return data is not available, the overall assessment of West Bancorporation's valuation metrics reinforces its attractiveness relative to the broader market. The combination of a low PEG ratio and competitive P/E ratio positions the company as a compelling investment opportunity within the regional banks sector.