Is Ponce Financial Group, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Ponce Financial Group, Inc. has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued, particularly when considering its P/E ratio of 24, which is higher than the peer average of approximately 15.5, and a price-to-book value of 0.67, suggesting that the stock is trading below its book value. Additionally, the PEG ratio of 0.14 indicates strong growth potential relative to its earnings.
In comparison to its peers, TrustCo Bank Corp. NY has a P/E ratio of 14.54, while Southern Missouri Bancorp, Inc. boasts a very attractive valuation with a P/E of 11.64. This highlights Ponce Financial's relatively high valuation metrics among its peers. Notably, Ponce Financial has outperformed the S&P 500 over the past year with a return of 27.02% compared to the index's 16.90%, reinforcing the attractiveness of its current valuation.