Is Meridian Corp. (Pennsylvania) overvalued or undervalued?

As of 8 September 2025, the valuation grade for Meridian Corp. (Pennsylvania) moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, with a P/E ratio of 10, a Price to Book Value of 0.88, and a PEG ratio of 0.28, all suggesting that the stock is trading at a discount relative to its earnings and growth potential. In comparison to peers, LINKBANCORP, Inc. has a P/E of 7.19, while Hawthorn Bancshares, Inc. stands at 11.27, highlighting Meridian's competitive positioning within the regional banks sector.
Meridian's recent stock performance has outpaced the S&P 500, with a year-to-date return of 17.58% compared to the index's 12.22%, and a one-year return of 33.55% versus 17.14% for the S&P 500. This strong performance reinforces the narrative of the stock being undervalued, as it has demonstrated significant returns relative to broader market benchmarks.