Is Citizens & Northern Corp. overvalued or undervalued?

As of 15 January 2025, the valuation grade for Citizens & Northern Corp. moved from fair to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued. Key ratios include a P/E ratio of 11, a PEG ratio of 0.73, and a dividend yield of 5.83%, which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Citizens & Northern Corp. has a lower P/E ratio than Peoples Financial Services Corp. at 13.04 and ACNB Corp. at 12.72, both of which are categorized as expensive. Additionally, the company's EV to EBITDA ratio of 10.58 is competitive against Sierra Bancorp's attractive rating with a P/E of 9.27. Notably, while Citizens & Northern Corp. has shown a 1-year return of 11.11%, outperforming the S&P 500's 10.26%, its longer-term performance has been less favorable, indicating potential for recovery.