Is PB Bankshares, Inc. overvalued or undervalued?

As of 23 July 2025, the valuation grade for PB Bankshares, Inc. has moved from fair to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued, particularly when considering its P/E ratio of 24, which is significantly higher than the fair peer IF Bancorp, Inc. at 20.89, and the attractive Texas Community Bancshares, Inc. at 20.39. Additionally, its Price to Book Value stands at 0.94, suggesting that the stock is trading close to its book value, but still reflects an elevated valuation relative to its peers.
In terms of performance, PB Bankshares, Inc. has shown a year-to-date return of 26.96%, outperforming the S&P 500's return of 12.22% during the same period. However, over a three-year horizon, the stock's return of 46.42% lags behind the S&P 500's impressive 70.41%, further emphasizing the potential risks associated with its current valuation.