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. 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 a PEG ratio of 0.97, which suggest that the stock is reasonably priced relative to its earnings growth potential.
In comparison to peers, Community West Bancshares has a higher P/E of 15.19 and Colony Bankcorp, Inc. shows a lower P/E of 10.86, indicating a mixed valuation landscape within the industry. Notably, Ames National Corp. has outperformed the S&P 500 year-to-date with a return of 32.81% compared to the index's 16.45%, but it has struggled over longer periods, particularly in the 3-year and 5-year spans, where it has returned -3.66% and -0.77%, respectively.