Is Northeast Bank (Maine) overvalued or undervalued?

As of 28 July 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 bank appears to be undervalued, supported by a P/E ratio of 9, a PEG ratio of 0.30, and an EV to EBITDA ratio of 5.63, all of which suggest that the stock is trading at a discount compared to its earnings growth potential and cash flow generation capabilities.
In comparison to its peers, Central Pacific Financial Corp. has a P/E ratio of 13.75, while Metropolitan Bank Holding Corp. stands at 12.12, highlighting Northeast Bank's relative undervaluation. The bank has also demonstrated impressive returns, with a year-to-date stock return of 23.03%, significantly outpacing the S&P 500's return of 12.22% over the same period, reinforcing the attractiveness of its current valuation.