Is ECB Bancorp, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for ECB Bancorp, Inc. has moved from very attractive to attractive, indicating a shift in perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 31, which is significantly higher than the peer average of 10.09 for comparable firms like First United Corp. and LINKBANCORP, Inc. Additionally, the Price to Book Value stands at 0.85, suggesting that the stock is trading close to its book value, while the EV to EBITDA ratio of 35.00 further reinforces the notion of overvaluation relative to peers.
In comparison to its peers, ECB Bancorp, Inc. has a PEG ratio of 2.04, which is considerably higher than LINKBANCORP, Inc.'s 0.0268, indicating that the growth prospects may not justify the current price. The company's recent stock performance shows a 1Y return of 17.07%, slightly outperforming the S&P 500's 16.64%, but this does not mitigate the overall valuation concerns. Overall, ECB Bancorp, Inc. is considered overvalued in the current market context.