Is Dime Community Bancshares, Inc. overvalued or undervalued?

As of 22 October 2024, the valuation grade for Dime Community Bancshares, Inc. has moved from very attractive to expensive, indicating a shift in perception regarding its valuation. The company appears overvalued based on several key metrics, including a P/E ratio of 32, which is significantly higher than the peer average of approximately 18.19 for German American Bancorp, and an EV to EBITDA ratio of 12.63, which also exceeds many of its peers. Additionally, the Price to Book Value stands at 0.85, suggesting that the stock is trading close to its book value but still reflects an expensive valuation relative to its performance.
In comparison to its peers, Dime Community Bancshares, Inc. has a higher P/E ratio than Berkshire Hills Bancorp, Inc. at 10.31 and Byline Bancorp, Inc. at 11.72, reinforcing the notion of overvaluation. Furthermore, the company's recent stock performance shows a return of 11.20% over the past year, which lags behind the S&P 500's return of 17.14%, indicating that while the stock has performed positively, it has not kept pace with broader market gains. Overall, these factors suggest that Dime Community Bancshares, Inc. is currently overvalued in the market.