Is Northeast Community Bancorp, Inc. overvalued or undervalued?

As of 28 January 2025, the valuation grade for Northeast Community Bancorp, Inc. has moved from very attractive to attractive. The company appears to be undervalued based on its current metrics. The P/E ratio stands at 7, which is significantly lower than the industry average, while the Price to Book Value is at 0.96 and the ROE is 14.36%.
In comparison to its peers, Northeast Community Bancorp's P/E ratio of 6.51 is notably lower than Esquire Financial Holdings, Inc. at 16.89 and First Financial Corp. (Indiana) at 13.97, indicating a more favorable valuation. Furthermore, the company's recent stock performance has outpaced the S&P 500 over the past year, with a return of 35.27% compared to the index's 10.26%, reinforcing the notion that it may be undervalued in the current market.