Is Provident Financial Holdings, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Provident Financial Holdings, Inc. moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued, as evidenced by its P/E ratio of 42, which is significantly higher than peers such as Ponce Financial Group, Inc. at 21.78 and Provident Bancorp, Inc. at 21.59. Additionally, the EV to EBITDA ratio stands at 46.21, further suggesting that the company's valuation metrics are elevated compared to its industry counterparts.
In terms of returns, Provident Financial has underperformed relative to the S&P 500, with a year-to-date return of -3.65% compared to the S&P 500's 16.45%. This trend continues over longer periods, with a 1-year return of -3.89% versus the S&P 500's 14.18%. Overall, these valuation ratios and performance metrics reinforce the conclusion that Provident Financial Holdings, Inc. is overvalued in the current market environment.