Is Carter Bankshares, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Carter Bankshares, Inc. has moved from expensive to attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued, with a P/E ratio of 14, a price-to-book value of 0.95, and an EV to EBITDA ratio of 9.46. These metrics suggest that the stock is trading below its intrinsic value compared to its earnings and book value.
In comparison to its peers, Carter Bankshares shows a more favorable valuation profile. For instance, MidWestOne Financial Group, Inc. has a P/E ratio of -12.21, while Guaranty Bancshares, Inc. (Texas) is at 16.11, indicating that Carter Bankshares is more attractively priced in the current market. Additionally, the company has outperformed the S&P 500 over the past year, with a return of 34.69% compared to the index's 10.26%, reinforcing the notion that it is undervalued relative to its growth potential.