Is National Bankshares, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for National Bankshares, Inc. moved from expensive to very attractive, indicating a significant improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 15, a Price to Book Value of 1.02, and an EV to EBITDA ratio of 3.56. In comparison, Alerus Financial Corp. has a P/E of 13.80, while Capital Bancorp, Inc. boasts a lower P/E of 11.92, highlighting National Bankshares' relative attractiveness within its peer group.
Despite underperforming the S&P 500 over longer periods, with a 1-year return of 5.30% compared to the S&P 500's 17.14%, the company's recent performance over the past month shows a positive return of 9.41%, suggesting a potential turnaround. Overall, the metrics indicate that National Bankshares, Inc. is positioned favorably in the market.