Is Waterstone Financial, Inc. overvalued or undervalued?

As of 2 May 2025, the valuation grade for Waterstone Financial, Inc. has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 14, a Price to Book Value of 0.75, and a PEG Ratio of 0.15, indicating that the stock is priced reasonably relative to its earnings growth potential.
In comparison to its peers, Waterstone Financial's P/E ratio of 13.56 is higher than that of Willis Lease Finance Corp. at 8.73, but lower than Atlanticus Holdings Corp. at 7.07, which is classified as very attractive. Additionally, the company has shown a dividend yield of 499.92%, which is notably high, though its ROE stands at 5.47% and ROCE at 3.83%, suggesting limited profitability relative to equity and capital employed. Despite recent stock performance outpacing the S&P 500 over the past week and month, the overall valuation indicates that Waterstone Financial is fairly valued in the current market context.