Is LINKBANCORP, Inc. overvalued or undervalued?

As of 12 May 2025, LINKBANCORP, Inc. has moved from a fair to an attractive valuation grade, indicating a more favorable outlook for the company's stock. The company is currently considered undervalued, with a P/E ratio of 7, a price to book value of 0.90, and an EV to EBITDA ratio of 4.03. These ratios suggest that LINKBANCORP is trading at a discount compared to its peers.
In comparison to its industry, LINKBANCORP's P/E ratio is significantly lower than that of First Financial Northwest, Inc., which stands at 194.61, and Hawthorn Bancshares, Inc. at 10.89. Additionally, the PEG ratio of LINKBANCORP is remarkably low at 0.01, further supporting the undervaluation thesis. Despite recent underperformance relative to the S&P 500 over the past month and year-to-date, the company's strong ROCE of 16.84% and ROE of 12.42% indicate solid operational efficiency, reinforcing the attractiveness of its current valuation.