Is Farmers National Banc Corp. overvalued or undervalued?

As of 8 May 2025, the valuation grade for Farmers National Banc Corp. has moved from very attractive to expensive, indicating a shift in perception regarding its market value. Based on the current analysis, the company appears to be overvalued. The P/E ratio stands at 11, while the industry average P/E is lower at approximately 10.25. Additionally, the EV to EBITDA ratio is 8.39, which is higher than some peers like Pathward Financial, Inc. at 9.68 and Stellar Bancorp, Inc. at 11.91.
In comparison to its peers, Farmers National Banc Corp. shows a ROCE of 12.90% and a ROE of 11.27%, which are competitive but do not justify its current valuation given the overall market conditions. The stock has underperformed against the S&P 500 year-to-date, with a return of -6.82% compared to the index's 2.44%. This further supports the conclusion that the company is currently overvalued in the market.