Is ECB Bancorp, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for ECB Bancorp, Inc. has moved from attractive to very attractive, indicating a strong positive shift in its valuation outlook. Based on the current metrics, the company appears to be undervalued. The P/E ratio stands at 31, which is significantly higher than peers like LINKBANCORP, Inc. at 7.19 and FinWise Bancorp at 20.49, suggesting that ECB Bancorp may be priced higher relative to its earnings. Additionally, the Price to Book Value is 0.85, and the EV to Sales ratio is 3.18, both of which further support the undervaluation perspective.
In terms of performance, ECB Bancorp's year-to-date return of 6.54% lags behind the S&P 500's 14.18%, and its three-year return of 9.41% is substantially lower than the S&P's 82.57%. This performance comparison reinforces the notion that the stock may be undervalued, as it has not kept pace with broader market returns. Overall, the combination of a very attractive valuation grade and favorable ratios suggests that ECB Bancorp, Inc. presents a compelling investment opportunity.