Is Richmond Mutual Bancorporation, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Richmond Mutual Bancorporation, 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 17, a Price to Book Value of 1.18, and a PEG Ratio of 5.04. In comparison to peers, Alerus Financial Corp. has a P/E of 13.80, while Capital Bancorp, Inc. boasts a very attractive P/E of 11.92, highlighting Richmond's relatively higher valuation metrics.
Despite the attractive grade, Richmond's recent stock performance has lagged behind the S&P 500, with a 1-year return of 4.81% compared to the S&P 500's 14.08%. Over the longer term, the 5-year return of 22.26% is also significantly lower than the S&P 500's 91.29%, suggesting that while the stock may be undervalued, it has struggled to keep pace with broader market returns.