Is Carver Bancorp, Inc. overvalued or undervalued?

As of 14 November 2022, the valuation grade for Carver Bancorp, Inc. moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued given its negative earnings and poor performance metrics. Key ratios reveal a price-to-book value of 0.33, an EV to EBIT of 0.69, and an ROE of -30.87%, highlighting the challenges the company faces.
In comparison to its peers, Carver Bancorp's valuation is concerning, especially when looking at companies like Texas Community Bancshares, Inc. with a P/E of 24.18 and PB Bankshares, Inc. at 23.90, both of which are classified as fairly valued. The stark contrast in performance and valuation metrics suggests that Carver Bancorp is not only struggling but is also trading at a premium relative to its financial health. Additionally, the company's stock has underperformed the S&P 500 year-to-date, further reinforcing the view of it being overvalued.