Is Carter Bankshares, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Carter Bankshares, Inc. moved from attractive to very attractive, indicating a positive shift in its perceived value. The company appears undervalued based on its key ratios, including a P/E ratio of 14, a Price to Book Value of 0.95, and an EV to EBITDA of 9.46. In comparison to peers, Guaranty Bancshares, Inc. has a higher P/E ratio of 18.33, while Peoples Financial Services Corp. has a lower EV to EBITDA of 10.84, suggesting that Carter Bankshares is positioned favorably within its industry.
Despite recent underperformance relative to the S&P 500 over the short term, with a 1-week return of -3.25% compared to the index's 1.09%, the company's long-term performance is strong, with a 5-year return of 176.63% versus the S&P 500's 100.56%. This indicates that while short-term fluctuations may exist, the overall valuation story remains compelling for Carter Bankshares, reinforcing its status as an undervalued investment opportunity.