Is Ponce Financial Group, Inc. overvalued or undervalued?

As of 28 January 2025, the valuation grade for Ponce Financial Group, Inc. has moved from very attractive to attractive. The company is currently assessed as undervalued. Key ratios include a P/E ratio of 24, a price to book value of 0.67, and an EV to EBITDA of 35.25, which suggest that the stock is trading at a discount relative to its earnings potential.
In comparison to its peers, Ponce Financial's P/E ratio of 24 is significantly higher than TrustCo Bank Corp. NY at 11.91 and Southern Missouri Bancorp, Inc. at 10.81, indicating a premium valuation in the context of earnings. The PEG ratio of 0.14 further supports the undervaluation narrative, as it suggests that the stock is priced attractively relative to its growth rate. Notably, Ponce Financial has outperformed the S&P 500 over the past year, with a return of 49.15% compared to the index's 10.26%, reinforcing the attractiveness of the investment.