Is Ames National Corp. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Ames National Corp. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. 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, which suggest that the stock is aligned with its earnings and asset values compared to its industry peers.
In comparison to its peers, Ames National Corp. has a P/E ratio of 13.18, which is lower than Community West Bancshares at 15.19 and higher than Colony Bankcorp, Inc. at 10.86. The company's recent stock performance shows a year-to-date return of 32.81%, significantly outperforming the S&P 500's return of 16.45%, though it has underperformed over the longer three and five-year periods. This mixed performance reinforces the notion that while the stock is currently fairly valued, its long-term outlook may require further evaluation.