Is Magyar Bancorp, Inc. overvalued or undervalued?

As of 1 October 2023, Magyar Bancorp, Inc. has moved from a fair to an attractive rating. The company appears to be undervalued based on its current financial metrics. Key ratios include a price-to-earnings (P/E) ratio of 10.5, a price-to-book (P/B) ratio of 1.2, and a return on equity (ROE) of 12%.
In comparison to its peers, such as First Bank (P/E of 12.0) and Community Bank (P/B of 1.5), Magyar Bancorp shows a more favorable valuation. This suggests that the market may not fully recognize the company's growth potential relative to its competitors. Additionally, while the stock has underperformed against the Sensex recently, this may present a buying opportunity for investors looking for value.