Is LCNB Corp. overvalued or undervalued?

As of 31 May 2024, LCNB Corp. has moved from an expensive to a very attractive valuation grade. The company is currently undervalued, with a P/E ratio of 12, which is significantly lower than peers such as Esquire Financial Holdings, Inc. at 16.89 and First Financial Corp. (Indiana) at 13.97. Additionally, LCNB Corp. has a price-to-book value of 0.89 and an EV to EBITDA ratio of 11.42, further indicating its attractive valuation relative to its peers.
In comparison, the average P/E ratio of its peer group suggests that LCNB Corp. is trading at a discount, which is reinforced by its PEG ratio of 1.04. Notably, LCNB Corp. has shown a 1-year stock return of 13.88%, outperforming the S&P 500's return of 10.26% during the same period, highlighting its potential for growth despite a challenging market environment. Overall, LCNB Corp. presents a compelling investment opportunity given its current valuation metrics.