Is Investar Holding Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Investar Holding Corp. has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 9, a Price to Book Value of 0.76, and a PEG ratio of 0.38, all of which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, LINKBANCORP, Inc. has a P/E ratio of 7.19, while First United Corp. stands at 10.09, highlighting that Investar is competitively priced within the regional banks sector. Despite recent underperformance against the S&P 500, with a 1-year return of 4.11% compared to the index's 14.08%, the long-term outlook remains positive, as evidenced by a 5-year return of 54.38%, which is still substantial, albeit lower than the S&P 500's 91.29%.