Is First Mid Bancshares, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for First Mid Bancshares, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 11, a Price to Book Value of 1.02, and a PEG ratio of 0.77, which are all favorable compared to industry peers. For instance, Banc of California, Inc. has a P/E of 18.08, while Southside Bancshares, Inc. is also rated very attractive with a P/E of 12.87.
In terms of performance, First Mid Bancshares has shown a YTD return of 9.83%, which lags behind the S&P 500's return of 12.22%. However, over the longer term, the stock's 5-year return of 59.02% is significantly lower than the S&P 500's 96.61%, suggesting that while the stock has performed well, it has not kept pace with the broader market. Overall, the combination of strong valuation ratios and a favorable grade change supports the conclusion that First Mid Bancshares is currently undervalued.