Is Affinity Bancshares, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Affinity Bancshares, Inc. moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears fairly valued based on its current metrics, with a P/E ratio of 19, a price to book value of 0.93, and an EV to EBITDA ratio of 11.43. Compared to peers, Affinity's P/E ratio is lower than Ponce Financial Group, Inc. at 21.78, but higher than Timberland Bancorp, Inc. at 10.19, suggesting it is positioned competitively within the industry.
In terms of returns, Affinity Bancshares has shown a year-to-date return of 12.57%, slightly outperforming the S&P 500's return of 12.22%, while over the past three years, it has returned 30.46% compared to the S&P's 70.41%. This performance, along with its fair valuation, supports the conclusion that Affinity Bancshares is currently a reasonable investment option within its sector.