Is Waterstone Financial, Inc. overvalued or undervalued?

As of 22 July 2025, the valuation grade for Waterstone Financial, Inc. moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued, with a P/E ratio of 14, a Price to Book Value of 0.75, and an impressive PEG Ratio of 0.15, suggesting strong growth potential relative to its price. In comparison, peers like Velocity Financial, Inc. have a P/E of 9.22, while Regional Management Corp. has a P/E of 17.39, highlighting Waterstone's relative attractiveness in the market.
Despite recent challenges reflected in its one-year return of -3.23% compared to the S&P 500's 17.14%, the company's strong dividend yield of 499.92% and low EV to EBITDA of 20.01 suggest a compelling investment opportunity. Overall, Waterstone Financial, Inc. is positioned as an attractive option within its industry, especially given its favorable valuation ratios compared to its peers.