Is First National Corp. (Virginia) overvalued or undervalued?

As of 18 June 2025, the valuation grade for First National Corp. (Virginia) has moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting overvaluation. The company is currently considered overvalued, with a P/E ratio of 25, which is significantly higher than the industry average represented by peers such as LINKBANCORP, Inc. at 6.92 and Hawthorn Bancshares, Inc. at 10.89. Additionally, the company's Price to Book Value stands at 1.05, while its ROE is a modest 4.14%, and ROCE is notably negative at -36.88%.
In comparison to its peers, First National Corp. shows a stark contrast in valuation metrics, reinforcing the notion of overvaluation. The EV to EBITDA ratio is negative at -0.73, further highlighting inefficiencies relative to its peers. Despite a recent 1-year stock return of 23.74%, which outperformed the S&P 500's 10.26%, the overall financial metrics suggest that the company is not positioned favorably in the current market landscape.