Is NB Bancorp, Inc. overvalued or undervalued?

As of 22 April 2025, the valuation grade for NB Bancorp, Inc. has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, supported by a P/E ratio of 14, which is competitive compared to its peers, such as the industry average P/E of approximately 14.14. Additionally, the price to book value stands at 0.88, and the EV to EBITDA ratio is 5.94, further suggesting that the company is trading at a discount relative to its earnings and asset value.
In terms of peer comparison, NB Bancorp, Inc. shows a favorable position against its competitor with a P/E ratio that is closely aligned with the industry average, while also maintaining a solid ROCE of 13.07% and ROE of 6.23%. Notably, the company's stock has outperformed the S&P 500 over the past year, returning 15.31% compared to the S&P 500's 10.26%, reinforcing the attractiveness of its current valuation.