Is Provident Financial Services, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Provident Financial Services, Inc. moved from expensive to very attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued, supported by a P/E ratio of 12, a price-to-book value of 0.87, and an EV to EBITDA ratio of 17.42. In comparison, Webster Financial Corp. has a P/E of 12.40, while Northwest Bancshares, Inc. shows a P/E of 12.32, suggesting that Provident is favorably positioned within its peer group.
Despite its attractive valuation metrics, Provident's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 7.68% compared to the index's 12.22%. However, over a five-year period, the company has delivered a return of 58.13%, which, while lower than the S&P 500's 96.61%, still reflects a strong performance relative to its historical context.