Is Ames National Corp. overvalued or undervalued?

As of 19 September 2025, Ames National 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 14, a Price to Book Value of 0.87, and an EV to EBITDA of 4.92. In comparison to peers, Community West Bancshares has a P/E of 15.19, while Colony Bankcorp, Inc. stands out with a very attractive P/E of 10.86.
Despite the fair valuation, Ames National Corp. has underperformed against the S&P 500 over the longer term, with a 3-year return of -7.41% compared to the S&P 500's 70.89%. However, it has shown a solid year-to-date return of 25.44%, which is significantly higher than the S&P 500's 13.31%.