Is First Community Bancshares, Inc. (Virginia) overvalued or undervalued?

As of 3 October 2025, the valuation grade for First Community Bancshares, Inc. (Virginia) has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 19, which is higher than peers like Premier Financial Corp. at 14.14 and Great Southern Bancorp, Inc. at 10.58. Additionally, the Price to Book Value stands at 1.96, and the EV to EBITDA ratio is 8.40, both suggesting that the stock may be priced above its intrinsic value relative to its earnings and assets.
In terms of performance, First Community Bancshares has underperformed compared to the S&P 500 across multiple timeframes, with a year-to-date return of -17.99% versus the S&P 500's 14.18%. This trend reinforces the notion of overvaluation, as the stock has not only lagged behind the broader market but also shows a significant decline over the past year. Overall, the combination of high valuation ratios and poor recent performance suggests that investors may want to exercise caution before investing in this stock.