Is Brookline Bancorp, Inc. overvalued or undervalued?

As of 22 April 2025, Brookline Bancorp, Inc. has moved from an expensive valuation grade to fair. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 13, while the Price to Book Value is 0.81, indicating a reasonable valuation compared to its assets. Additionally, the EV to EBIT ratio is 19.36, which is higher than some peers, suggesting that the market may not fully recognize the company's earnings potential.
In comparison to its peers, Provident Financial Services, Inc. has a P/E ratio of 11.44 and Northwest Bancshares, Inc. at 12.93, both indicating a more attractive valuation than Brookline. OceanFirst Financial Corp. also shows a fair valuation with a P/E of 10.75. Notably, Brookline's dividend yield is exceptionally high at 477.49%, which may attract income-focused investors despite its lower return on equity of 6.21%. Over the past year, Brookline has outperformed the S&P 500 with a return of 25.89%, reinforcing its fair valuation amidst market fluctuations.