Is Coastal Financial Corp. (Washington) overvalued or undervalued?

As of 2 August 2024, the valuation grade for Coastal Financial Corp. (Washington) has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently considered overvalued. Key ratios reveal a P/E ratio of 27, a Price to Book Value of 2.91, and an EV to EBITDA of 11.24, all of which suggest that the stock is trading at a premium compared to its peers.
In comparison to its industry, Coastal Financial Corp. stands out with a P/E ratio significantly higher than that of Republic Bancorp, Inc. (Kentucky) at 10.09 and Community Trust Bancorp, Inc. (Kentucky) at 10.47, both of which are categorized as very attractive. The PEG ratio of 2.70 further emphasizes the overvaluation, as it is substantially higher than the industry average. Despite recent strong stock performance, including a 113.61% return over the past year, the current valuation metrics indicate that Coastal Financial Corp. is not justified at its current price levels.