Is Meridian Corp. (Pennsylvania) overvalued or undervalued?

As of 6 June 2025, the valuation grade for Meridian Corp. (Pennsylvania) has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, especially when considering its P/E ratio of 10, which is notably lower than the industry average. Additionally, Meridian's Price to Book Value stands at 0.88, and its PEG Ratio is an impressive 0.28, suggesting strong growth potential relative to its price.
In comparison to its peers, LINKBANCORP, Inc. has a P/E of 6.92, while Peoples Bancorp of North Carolina, Inc. is at 9.24, both of which are higher than Meridian's valuation metrics. This positions Meridian favorably within its competitive landscape. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -16.63% compared to the index's 2.44%, the underlying financial ratios and peer comparisons suggest that Meridian Corp. presents a compelling investment opportunity at its current price of 11.43.