Is Farmers & Merchants Bancorp, Inc. (Ohio) overvalued or undervalued?

As of 3 October 2025, the valuation grade for Farmers & Merchants Bancorp, Inc. (Ohio) has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued based on several key metrics, including a P/E ratio of 13, a Price to Book Value of 0.99, and a PEG Ratio of 0.48, which suggests that the stock is trading at a discount relative to its growth potential.
In comparison to its peers, Farmers & Merchants Bancorp, Inc. has a P/E ratio that is more favorable than Bridgewater Bancshares, Inc. at 11.97 and Home Bancorp, Inc. at 10.68, both of which are classified as fair. Additionally, the company's PEG ratio of 0.48 is significantly lower than that of its peers, indicating a better value proposition. Despite the recent underperformance relative to the S&P 500, with a year-to-date return of -14.09% compared to the index's 14.18%, the overall valuation metrics suggest that the stock is positioned favorably for potential upside.