Is Northeast Bank (Maine) overvalued or undervalued?

As of 14 May 2025, the valuation grade for Northeast Bank (Maine) has moved from attractive to very attractive, indicating a strong positive shift in its valuation outlook. The company is currently assessed as undervalued. Key ratios supporting this conclusion include a P/E ratio of 9, a Price to Book Value of 1.42, and a PEG ratio of 0.30, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Northeast Bank (Maine) stands out with a significantly lower P/E ratio of 8.86, while Central Pacific Financial Corp. is considered expensive with a P/E of 11.97, and Equity Bancshares, Inc. is rated fair at 12.08. Additionally, the company's return on equity (ROE) is a robust 15.69%, further highlighting its efficiency in generating profits. Notably, Northeast Bank has outperformed the S&P 500 over the past year, with a stock return of 55.08% compared to the index's 10.26%, reinforcing its attractiveness as an investment.