Is New York Community Bancorp, Inc. overvalued or undervalued?

As of 31 January 2024, the valuation grade for New York Community Bancorp, Inc. has moved from very attractive to risky, indicating a significant deterioration in its investment appeal. The company appears to be overvalued, particularly given its negative financial metrics, including a Price to Book Value of 0.61 and an EV to EBITDA of -4.83, which suggest challenges in profitability and operational efficiency. Additionally, the company's ROE stands at -10.06%, further highlighting its struggles.
In comparison with peers, Webster Financial Corp. has a fair valuation with a P/E of 12.40, while TFS Financial Corp. is rated very attractive with a P/E of 55.63, underscoring the relative weakness of New York Community Bancorp's position. The company's recent stock performance has been mixed; while it has returned 33.01% year-to-date, it has significantly underperformed against the S&P 500 over longer periods, with a 3-year return of -56.41% compared to the S&P 500's 70.41%. This stark contrast reinforces the notion that the stock is overvalued in its current state.