Is Middlefield Banc Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Middlefield Banc Corp. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 17, a Price to Book Value of 1.28, and an EV to EBIT of 18.27. In comparison to peers, Orrstown Financial Services, Inc. has a P/E of 10.63, while Southern First Bancshares, Inc. has a P/E of 16.87, indicating that Middlefield is positioned competitively within its industry.
Despite its fair valuation, Middlefield Banc Corp. has underperformed relative to the S&P 500 over longer periods, with a 3-year return of 22.66% compared to the S&P 500's 70.41% and a 5-year return of 54.84% versus 96.61%. This suggests that while the stock is currently fairly valued, it may face challenges in achieving higher returns compared to broader market benchmarks.