Is Alerus Financial Corp. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Alerus Financial Corp. moved from fair to attractive, indicating a more favorable assessment of its stock. The company appears to be undervalued, particularly when considering its P/E ratio of 19, a Price to Book Value of 1.05, and a PEG Ratio of 0.17, which suggests strong growth potential relative to its price.
In comparison to peers, Alerus Financial Corp. has a P/E ratio higher than The First Bancshares, Inc. at 13.19 and First Financial Corp. at 14.27, indicating it may be priced more aggressively despite its attractive growth metrics. However, the EV to EBITDA ratio of 19.31 is competitive within the industry. Notably, Alerus has underperformed against the S&P 500 over the past year, with a return of -0.36% compared to the index's 17.82%, but has shown a positive YTD return of 14.45%, slightly above the S&P 500's 14.18%.