Is Amalgamated Financial Corp. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Amalgamated Financial Corp. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. The P/E ratio stands at 9, which is lower than the peer average of 11.50, suggesting that the company is trading at a discount relative to its peers. Additionally, the PEG ratio of 0.85 indicates that the stock may be undervalued in relation to its growth prospects, while the Price to Book Value of 1.27 reflects a reasonable valuation compared to the book value of its assets.
In comparison to its peers, Coastal Financial Corp. has a significantly higher P/E ratio of 35.43, while Community Trust Bancorp, Inc. is valued more attractively at 11.50. This peer comparison highlights that Amalgamated Financial Corp. is positioned competitively within the regional banks sector. Notably, the company's stock has underperformed against the S&P 500 in the short term, with a year-to-date return of -14.16% compared to the index's 12.22%, although it has shown strong performance over the past five years with a return of 142.86%.