Is National Bankshares, Inc. overvalued or undervalued?

As of 9 May 2025, the valuation grade for National Bankshares, Inc. has moved from expensive to very attractive, indicating a significant positive shift in its perceived value. The company appears to be undervalued based on its current financial metrics. The P/E ratio stands at 15, which is lower than the peer average of 16.89 for Esquire Financial Holdings, Inc. and 19.09 for Alerus Financial Corp. Additionally, National Bankshares has a Price to Book Value of 1.02 and an EV to EBITDA of 3.56, both of which suggest a favorable valuation compared to its peers.
In comparison to its industry, National Bankshares, Inc. shows strong performance with a ROCE of 27.67% and a dividend yield of 4.86%, further reinforcing its attractive valuation. While the stock has underperformed the S&P 500 on a year-to-date and one-year basis, the recent grade change and favorable ratios suggest that the market may be undervaluing the company relative to its financial health and growth potential.