Is Provident Financial Holdings, Inc. overvalued or undervalued?

As of 2 May 2025, the valuation grade for Provident Financial Holdings, Inc. has moved from expensive to fair. The company is currently fairly valued. Key ratios include a P/E ratio of 42, a Price to Book Value of 2.14, and an EV to EBITDA of 46.21. In comparison to peers, Ponce Financial Group, Inc. has a more attractive P/E ratio of 22.71, while Provident Bancorp, Inc. is categorized as very expensive with a P/E of 46.32.
Despite the fair valuation, Provident Financial Holdings has shown a strong one-year stock return of 24.11%, significantly outperforming the S&P 500's 10.26% return over the same period. This performance may suggest that the market is beginning to recognize the company's potential, aligning its valuation more closely with its peers.