Is Richmond Mutual Bancorporation, Inc. overvalued or undervalued?

As of 23 July 2025, the valuation grade for Richmond Mutual Bancorporation, Inc. has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued, especially when considering its P/E ratio of 17, which is higher than the peer average of 13.80 for Alerus Financial Corp. and significantly lower than the 20.43 of Arrow Financial Corp. Additionally, the Price to Book Value stands at 1.18, and the PEG Ratio is notably high at 5.04, suggesting limited growth expectations relative to its price.
In comparison to its peers, Richmond Mutual Bancorporation, Inc. is positioned attractively with a P/E ratio of 17.43, while Capital Bancorp, Inc. has a much lower P/E of 11.92, reinforcing the notion that Richmond is undervalued. The company's recent stock performance has been mixed, with a 1-year return of 14.01% compared to the S&P 500's 17.14%, and a 5-year return of 31.41% versus the S&P 500's 96.61%, indicating that while it has performed well, it still lags behind the broader market over longer periods.