Is Ames National Corp. overvalued or undervalued?

As of 3 October 2025, Ames National Corp. has moved from a fair to an attractive valuation grade. The company appears to be undervalued, supported by 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, Colony Bankcorp, Inc. has a P/E of 10.86, while Community West Bancshares has a P/E of 15.19, indicating that Ames National Corp. is priced more favorably relative to some competitors.
Despite recent underperformance against the S&P 500 over the past week and three years, where it returned -1.81% and -9.73% respectively, it has shown resilience with a year-to-date return of 21.97%, outperforming the S&P 500's 14.18%. This suggests that while the stock has faced challenges, its current valuation metrics indicate it is an attractive investment opportunity.