Is 1895 Bancorp of Wisconsin, Inc. overvalued or undervalued?

As of 1 October 2023, 1895 Bancorp of Wisconsin, Inc. has moved from fair to attractive. The company is currently undervalued based on its financial metrics. Key ratios include a price-to-earnings (P/E) ratio of 12.5, a price-to-book (P/B) ratio of 1.1, and a return on equity (ROE) of 10%.
In comparison to its peers, such as First Business Financial Services with a P/E of 14.2 and Waterstone Financial with a P/B of 1.3, 1895 Bancorp appears to be trading at a discount. This suggests that the market has not fully recognized its potential, reinforcing the undervaluation narrative. Additionally, the stock has outperformed the Sensex recently, further supporting the investment case.