Is Kentucky First Federal Bancorp overvalued or undervalued?

As of 10 October 2025, the valuation grade for Kentucky First Federal Bancorp has moved from very expensive to expensive. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 0.46 and an EV to Capital Employed ratio of 0.63, which indicate a lack of profitability and efficiency in capital use. Additionally, the negative ROCE of -0.57% and ROE of -0.26% further highlight the challenges the company faces in generating returns for its shareholders.
In comparison to peers, Magyar Bancorp, Inc. has a much more favorable P/E ratio of 11.61, while TC Bancshares, Inc. shows a strong EV to EBITDA of 58.07, indicating better valuation metrics within the industry. The stock has underperformed against the S&P 500 over the long term, with a 3-year return of -49.31% compared to the S&P 500's 81.39%, reinforcing the notion that Kentucky First Federal Bancorp is currently overvalued.