Is Richmond Mutual Bancorporation, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Richmond Mutual Bancorporation, Inc. moved from fair to attractive, indicating a positive shift in its perceived value. The company appears undervalued, especially when considering its P/E ratio of 17, which is higher than peers like Alerus Financial Corp. at 13.80 and Capital Bancorp, Inc. at 11.92. Additionally, the Price to Book Value stands at 1.18, and the PEG Ratio is notably high at 5.04, suggesting that while the company may have growth potential, it is priced at a premium relative to its earnings growth.
In comparison to its peers, Richmond Mutual Bancorporation's valuation ratios suggest it is positioned favorably, especially against the backdrop of the industry average. The stock has underperformed relative to the S&P 500 over the past year, returning 4.62% compared to the index's 13.36%, and has shown a significant lag over longer periods, with a 5-year return of 26.04% versus 88.45% for the S&P 500. This underperformance may reinforce the case for its current undervaluation.