Is Richmond Mutual Bancorporation, Inc. overvalued or undervalued?

As of 18 June 2025, the valuation grade for Richmond Mutual Bancorporation, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 17, which is lower than the industry average of 19.09 for Alerus Financial Corp. and 18.82 for Arrow Financial Corp. Additionally, Richmond's price to book value stands at 1.18, while its PEG ratio is significantly higher at 5.04, suggesting that growth expectations may not be fully priced in.
In comparison to its peers, Richmond Mutual Bancorporation's valuation metrics show it to be more appealing, especially when contrasted with Capital Bancorp, Inc. which has a P/E of 12.38. The company's dividend yield of 316.96% and ROE of 6.86% further highlight its potential for returns. Despite a year-to-date stock return of -4.38%, the one-year return of 18.17% outperforms the S&P 500's 10.26%, reinforcing the attractiveness of its current valuation.