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

As of 17 October 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 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, while the EV to Capital Employed is at 0.41, further supporting the notion of overvaluation.
In comparison to the S&P 500, First National Corp. has underperformed in the year-to-date and three-year periods, with returns of -4.61% and 47.32% respectively, compared to the index's 13.30% and 81.19%. This underperformance, alongside the valuation metrics, reinforces the conclusion that First National Corp. is overvalued in the current market environment.