Is Citizens & Northern Corp. overvalued or undervalued?

As of 16 January 2025, the valuation grade for Citizens & Northern Corp. has moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company appears undervalued, supported by a P/E ratio of 11, a Price to Book Value of 1.04, and a PEG Ratio of 0.73, all of 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 10.84 and ACNB Corp. at 13.51, further emphasizing its attractive valuation. Despite recent stock performance showing a 1-year return of 3.01% compared to the S&P 500's 17.14%, the long-term outlook remains positive with a 5-year return of 24.85%, albeit significantly lower than the S&P 500's 96.61%. This suggests that while the stock has underperformed in the short term, its current valuation presents an opportunity for potential upside.