Is Kentucky First Federal Bancorp overvalued or undervalued?

As of 31 October 2025, the valuation grade for Kentucky First Federal Bancorp has moved from fair to expensive. The company appears to be overvalued based on its current metrics, particularly given its price-to-book value of 0.46 and an EV to capital employed ratio of 0.63, which suggest that the market is pricing the company higher than its underlying assets would indicate. Additionally, the negative ROCE of -0.57% and ROE of -0.26% further highlight the company's struggles in generating returns.
In comparison to its peers, Kentucky First Federal Bancorp's valuation is notably less attractive; for instance, Magyar Bancorp, Inc. is classified as very attractive with a P/E ratio of 11.61, while TC Bancshares, Inc. is also expensive with a P/E of 58.07. The company's recent stock performance shows a strong return of 44.09% over the past year, significantly outperforming the S&P 500's 19.89%, but this does not mitigate the concerns regarding its valuation metrics.