Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-26), Provident Financial Services's Beta is 1.5285.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Provident Financial Services's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Provident Financial Services Beta vs Banks Industry
For the Banks industry and Financial Services sector, Provident Financial Services's Beta distribution charts can be found below:
* The bar in red indicates where Provident Financial Services's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Provident Financial Services (FRA:PQ3) has a Beta of 1.5285 as of Jun. 26, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Provident Financial Services and its competitors.
Is Provident Financial Services' Beta too high?
Provident Financial Services' current Beta is 1.5285. Overall, Provident Financial Services has a GF Score™ of 54/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Provident Financial Services' Beta compare to SBCF and BANC?
Provident Financial Services' Beta of 1.5285 can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Banks company?
A good Beta depends on the Banks industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Provident Financial Services and its competitors. Provident Financial Services's current Beta is 1.5285. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Provident Financial Services stock overvalued right now?
Based on GuruFocus' analysis, Provident Financial Services (FRA:PQ3) is currently considered Modestly Overvalued. The stock's GF Value™ is €15.93, compared to a current price of €20.40 — trading 28.1% above its estimated fair value. The current Beta is 1.5285. Provident Financial Services' overall GF Score™ is 54/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Provident Financial Services (FRA:PQ3), the current Beta is 1.5285 as of Jun. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Provident Financial Services (FRA:PQ3) Overvalued in 2026?
Based on GuruFocus' analysis, Provident Financial Services stock appears to be overvalued.
The current stock price of €20.40 is trading 28.1% above its estimated GF Value™ of €15.93.
GuruFocus considers Provident Financial Services to be Modestly Overvalued.
Key valuation signals for FRA:PQ3:
Beta: 1.5285
GF Value™: €15.93 vs. price of €20.40 (28.1% above fair value)
No single metric tells the full story. See the FRA:PQ3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Provident Financial Services Inc is the holding company for The Provident Bank, a community-oriented bank. The company's operations are solely in the financial services industry and include providing traditional banking and other financial services to its customers. The company operates in the geographical regions of northern and central New Jersey, Queens and Nassau Counties in New York and eastern Pennsylvania. The company has a single reporting segment for financial reporting purposes. The majority of the revenue-generating activities that are components of non-interest income. These revenue streams can generally be classified into three broad categories: wealth management revenue, insurance agency income, and banking service charges and other fees.
54GF Score
Get the complete analysis for FRA:PQ3
Beta is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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