Is Alerus Financial Corp. overvalued or undervalued?

As of 7 July 2025, Alerus Financial Corp. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 19, a Price to Book Value of 1.05, and an EV to EBITDA of 19.31. Comparatively, The First Bancshares, Inc. has a P/E of 13.19, and Farmers National Banc Corp. is rated very attractive with a P/E of 11.62, indicating that Alerus is priced higher relative to some peers.
In terms of recent performance, Alerus Financial Corp. has outperformed the S&P 500 over the year-to-date period with a return of 21.73% compared to the S&P 500's 12.22%. However, over longer periods, such as the 3-year and 5-year returns, Alerus has lagged significantly behind the benchmark, with returns of only 1.47% and 5.88%, respectively, compared to the S&P 500's much higher returns.