Is Plumas Bancorp overvalued or undervalued?

As of 16 April 2025, the valuation grade for Plumas Bancorp has moved from expensive to fair, indicating a more favorable assessment of its stock price. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 8, a Price to Book Value of 1.35, and an EV to EBITDA ratio of 4.66. In comparison to peers, Plumas Bancorp's P/E ratio is lower than Northrim BanCorp, Inc. at 11.11 and Southern First Bancshares, Inc. at 16.87, suggesting that Plumas may offer better value relative to its earnings.
Despite a recent underperformance against the S&P 500 with a year-to-date return of -4.51% compared to the index's 12.22%, the long-term outlook remains positive, as evidenced by a 5-year return of 119.40%, significantly outperforming the S&P 500's 96.61%. Overall, Plumas Bancorp is positioned as fairly valued within its industry, reflecting a balanced risk-reward scenario for potential investors.