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

As of 27 August 2025, the valuation grade for First National Corp. (Virginia) moved from very expensive to expensive, indicating a slight improvement in perceived value but still suggesting overvaluation. The company appears to be overvalued based on its P/E ratio of 25, which is significantly higher than peers like LINKBANCORP, Inc. at 7.19 and Hawthorn Bancshares, Inc. at 11.27. Additionally, the Price to Book Value stands at 1.05, and the ROE is relatively low at 4.14%, further supporting the overvaluation assessment.
Comparing its performance against the S&P 500, First National Corp. has shown a 1-year return of 39.03%, which outperformed the index's 17.14% return, but over the longer term, its 3-year and 5-year returns lag behind the S&P 500. This discrepancy in longer-term performance may reflect the company's challenges in sustaining growth relative to the broader market. Overall, First National Corp. is considered overvalued in the current market context.