Is ECB Bancorp, Inc. overvalued or undervalued?

As of 12 May 2025, the valuation grade for ECB Bancorp, Inc. has moved from expensive to fair. The company is currently fairly valued, with a P/E ratio of 31, a Price to Book Value of 0.85, and an EV to EBIT of 36.77. In comparison to its peers, LINKBANCORP, Inc. has a significantly lower P/E ratio of 6.92, while FinWise Bancorp shows a fair valuation with a P/E of 14.89, indicating that ECB Bancorp's valuation is on the higher side relative to its peers.
The company's recent stock performance has outpaced the S&P 500 over the past year, returning 23.54% compared to the S&P 500's 10.26%. Despite this positive return, the valuation metrics suggest that ECB Bancorp is not undervalued, especially when considering the higher P/E ratio compared to its peers. Overall, the company appears fairly valued in the current market context.