Is Oak Valley Bancorp overvalued or undervalued?

As of 7 July 2025, the valuation grade for Oak Valley Bancorp has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 9, a Price to Book Value of 1.22, and an EV to EBITDA of 0.47. In comparison to its peers, Orrstown Financial Services has a P/E of 10.63, while Unity Bancorp stands out with a P/E of 11.21, indicating that Oak Valley is competitively priced within its industry.
Despite the fair valuation, Oak Valley Bancorp has underperformed relative to the S&P 500 in the short term, with a year-to-date return of -3.76% compared to the S&P 500's 12.22%. However, over the past five years, Oak Valley has delivered a substantial return of 118.22%, outperforming the S&P 500's 96.61%. This suggests potential resilience and value in the long term despite recent challenges.