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 its valuation outlook. Based on the current metrics, the company appears to be overvalued. The P/E ratio stands at 25, significantly higher than peers like LINKBANCORP, Inc. at 7.19 and Hawthorn Bancshares, Inc. at 11.27. Additionally, the Price to Book Value is 1.05, and the ROE is a modest 4.14%, which further supports the overvaluation conclusion.
In comparison to the broader market, First National Corp. has underperformed relative to the S&P 500, with a year-to-date return of -4.61% versus the index's 13.30%. This trend continues over longer periods, with a 3-year return of 47.32% compared to the S&P 500's 81.19%. Overall, the combination of high valuation ratios and underwhelming performance relative to peers and the market suggests that First National Corp. is currently overvalued.