Is Investar Holding Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Investar Holding Corp. moved from attractive to very attractive, indicating a stronger outlook for the company. Based on the current metrics, the stock appears undervalued, particularly with a P/E ratio of 9, a Price to Book Value of 0.76, and a PEG Ratio of 0.38, all suggesting that the company is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Investar Holding Corp. has a lower P/E ratio than LINKBANCORP, Inc. at 7.19 and First United Corp. at 10.09, reinforcing its undervaluation. The company's return over the past year is 4.11%, which underperformed the S&P 500's return of 14.08%, but over the last five years, it has shown a significant gain of 54.38%, although still lagging behind the S&P 500's 91.29%. This mixed performance suggests that while the stock may be undervalued, it has not kept pace with broader market gains recently.