Is Red River Bancshares, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Red River Bancshares, Inc. moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 10, a Price to Book Value of 1.12, and a PEG ratio of 0.71, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Northeast Bank (Maine) has a P/E of 10.54, while Five Star Bancorp is considered expensive with a P/E of 13.58. This positions Red River Bancshares favorably within the regional banks industry. Additionally, while the stock has underperformed the S&P 500 over the longer term, with a 3-year return of 16.06% compared to 76.66% for the index, it has outperformed in the year-to-date period with a return of 22.38% versus 16.30%.