Is Farmers National Banc Corp. overvalued or undervalued?

As of 8 September 2025, the valuation grade for Farmers National Banc Corp. moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 11, which is notably lower than its peer, The First Bancshares, Inc., with a P/E of 13.19. Additionally, the EV to EBITDA ratio stands at 8.39, further emphasizing its attractive valuation compared to industry standards.
In terms of performance metrics, Farmers National Banc Corp. has a Price to Book Value of 1.20 and an EV to Sales ratio of 2.13. The company's ROCE is 12.90% and ROE is 11.27%, reflecting solid profitability. Despite a recent decline in stock performance, with a 1-year return of -2.58% compared to the S&P 500's 17.14%, the long-term outlook remains promising, as evidenced by a 5-year return of 32.86%, albeit still trailing behind the S&P 500's 96.61%.