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

As of 12 August 2025, the valuation grade for Coastal Financial Corp. (Washington) has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued based on its metrics, with a P/E ratio of 27, a Price to Book Value of 2.91, and an EV to EBITDA of 11.24. In comparison, peers such as Banc of California, Inc. have a P/E of 18.08, while Community Trust Bancorp, Inc. boasts a much lower P/E of 11.50, highlighting the disparity in valuation within the sector.
Despite the high valuation, Coastal Financial Corp. has shown impressive stock performance, with a year-to-date return of 35.90%, significantly outperforming the S&P 500's 12.22% over the same period. However, the company's elevated valuation ratios suggest that it may not be a sustainable investment at current levels.