Is BCB Bancorp, Inc. overvalued or undervalued?

As of 20 February 2025, the valuation grade for BCB Bancorp, Inc. moved from fair to very attractive. The company appears to be undervalued based on its current metrics. The P/E ratio stands at 36, significantly higher than peers like Bank7 Corp. at 8.01 and Southern States Bancshares, Inc. at 9.13, indicating a potential mispricing. Additionally, the price to book value is notably low at 0.50, suggesting that the stock is trading below its intrinsic value.
In comparison to its peers, BCB Bancorp's EV to EBITDA ratio of 53.47 is also elevated, especially when contrasted with Bank7 Corp.'s 8.01. Despite the high P/E ratio, the company has a modest dividend yield of 1.91% and a low ROE of 1.41%, which could raise concerns about profitability. Recent stock performance shows that BCB Bancorp has underperformed against the S&P 500, with a year-to-date return of -32.09% compared to the index's 2.44%, reinforcing the notion that the stock may be undervalued in the current market environment.