Is Sound Financial Bancorp, Inc. overvalued or undervalued?

As of 12 October 2023, Sound Financial Bancorp, Inc. has moved from fair to attractive. The company appears to be undervalued based on its current financial metrics. Key ratios include a price-to-earnings (P/E) ratio of 10.5, a price-to-book (P/B) ratio of 1.2, and a return on equity (ROE) of 8.4%.
In comparison to its peers, such as First Financial Northwest with a P/E of 12.0 and Heritage Financial Corporation with a P/B of 1.5, Sound Financial Bancorp stands out as a more appealing investment opportunity. Additionally, recent stock performance has shown resilience, outperforming the Sensex, which further supports the undervaluation narrative.