Is Generations Bancorp NY, Inc. overvalued or undervalued?

As of 8 November 2023, the valuation grade for Generations Bancorp NY, Inc. has moved from expensive to risky. The company appears to be overvalued given its negative performance metrics and ratios. Key ratios include a Price to Book Value of 1.04, an EV to EBIT of -7.16, and an EV to EBITDA of -7.54, which indicate significant financial distress compared to its peers.
In the peer comparison, Generations Bancorp's EV to EBITDA ratio is notably worse than CFSB Bancorp, Inc. at -92.33 and NSTS Bancorp, Inc. at -61.49, both of which also carry a risky valuation. Despite this, the company has shown a strong YTD return of 13.31%, outperforming the S&P 500's 12.22%, and a remarkable 1-year return of 47.93% compared to the S&P 500's 17.14%. However, the overall financial ratios suggest that the stock is not fundamentally sound, reinforcing the overvalued assessment.