Is Ponce Financial Group, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Ponce Financial Group, Inc. has moved from fair to attractive, indicating a more favorable assessment of its worth. The company appears to be undervalued, particularly when considering its P/E ratio of 24, which is higher than peers like TrustCo Bank Corp. NY at 14.54 and Southern Missouri Bancorp, Inc. at 11.64. Additionally, Ponce's price to book value stands at 0.67, suggesting that the stock is trading below its book value, while its PEG ratio of 0.14 indicates strong growth potential relative to its earnings.
In terms of peer comparisons, Ponce Financial's valuation metrics suggest it is positioned favorably against its industry, especially when compared to Southern Missouri Bancorp, which is rated very attractive. Despite a recent decline in stock performance over the past week and month, with returns of -2.36% and -2.62% respectively, Ponce has outperformed the S&P 500 over the longer term, with a 1-year return of 30.72% compared to the index's 17.82%. This long-term performance reinforces the notion that the stock may be undervalued relative to its potential.