Is Dime Community Bancshares, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Dime Community Bancshares, Inc. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. The P/E ratio stands at 32, which is higher than the peer average of 28.43, while the Price to Book Value is notably low at 0.85, suggesting potential undervaluation compared to its book value. Additionally, the EV to EBITDA ratio is 12.63, indicating a reasonable valuation relative to earnings before interest, taxes, depreciation, and amortization.
In comparison to peers, Byline Bancorp, Inc. has a fair valuation with a P/E of 11.72, and Bank First Corp. also shows a fair valuation at a P/E of 20.24. Dime Community Bancshares has underperformed against the S&P 500 over the year-to-date and three-year periods, with returns of -1.55% and 1.99%, respectively, compared to the S&P 500's 14.18% and 82.57%. However, it has shown a positive return of 8.26% over the past year, which is lower than the S&P 500's 17.82%, reinforcing the notion that while the stock is fairly valued, it may still face challenges in outperforming broader market indices.