Is Red River Bancshares, Inc. overvalued or undervalued?

As of 12 May 2025, the valuation grade for Red River Bancshares, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a P/E ratio of 10, a Price to Book Value of 1.12, and an impressive ROCE of 54.50%.
In comparison to its peers, Red River Bancshares stands out with a lower P/E ratio than Burke Herbert Financial Services Corp., which has a P/E of 15.15 and is deemed very expensive, and Equity Bancshares, Inc. at 12.08, which is rated fair. Additionally, the company's PEG ratio of 0.71 suggests that it is trading at a discount relative to its growth potential. Notably, Red River has outperformed the S&P 500 over the past year, returning 21.06% compared to the index's 10.26%, reinforcing its attractive valuation.