Is Carver Bancorp, Inc. overvalued or undervalued?

As of 14 November 2022, the valuation grade for Carver Bancorp, Inc. has moved from fair to risky, indicating a deterioration in its investment appeal. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 0.33 and an EV to EBITDA ratio of 0.75, which suggest that the market may not be accurately reflecting the company's financial health. Additionally, the negative ROE of -30.87% reinforces concerns about its profitability.
In comparison to its peers, Carver Bancorp's valuation ratios are concerning; for instance, CFSB Bancorp, Inc. has a P/E ratio of -92.3349, while Texas Community Bancshares, Inc. is considered attractive with a P/E of 20.3940. The stock has shown strong short-term performance, with a 1-month return of 39.24% compared to the S&P 500's 2.33%, but its long-term returns are troubling, with a 5-year decline of -61.31% against the S&P 500's 96.61%. Overall, the combination of negative financial metrics and poor long-term performance suggests that Carver Bancorp, Inc. is overvalued at its current price.