Is Red River Bancshares, Inc. overvalued or undervalued?

As of 30 April 2025, the valuation grade for Red River Bancshares, Inc. moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, supported by a P/E ratio of 10, a Price to Book Value of 1.12, and an EV to EBITDA ratio of 2.61. In comparison to its peers, Five Star Bancorp has a P/E of 13.58, while SmartFinancial, Inc. boasts a higher valuation with a P/E of 15.30, suggesting that Red River Bancshares is trading at a discount relative to these competitors.
Despite the lack of recent return data, the company's strong ROCE of 54.50% and a PEG ratio of 0.71 further reinforce its attractive valuation. Overall, Red River Bancshares, Inc. presents a compelling investment opportunity, particularly when considering its favorable valuation metrics in relation to its peers.