Is Northeast Community Bancorp, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Northeast Community Bancorp, Inc. has moved from attractive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 7, a price to book value of 0.96, and an EV to EBIT of 3.49. In comparison to peers, First Financial Corp. has a P/E of 14.27, while Alerus Financial Corp. has a P/E of 13.80, indicating that Northeast Community Bancorp is trading at a significant discount relative to these competitors.
Despite the recent downgrade in valuation, the company's long-term performance has been strong, with a 5-year return of 180.08%, although it has underperformed the S&P 500 over the same period, which returned 244.16%. Overall, the company is fairly valued, but its lower valuation ratios compared to peers suggest potential for improvement.