Is Eastern Bankshares, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Eastern Bankshares, Inc. has moved from expensive to risky. The company appears to be overvalued based on its financial metrics. Key ratios include a Price to Book Value of 0.88, an EV to EBIT of -22.40, and a Dividend Yield of an extraordinary 268.63%. Despite these high yields, the negative earnings and return ratios indicate significant underlying issues.
In comparison to its peers, Eastern Bankshares, Inc. has a notably unfavorable valuation, with Ameris Bancorp showing a P/E ratio of 11.44 and BancFirst Corp. at 17.67, both indicating a more favorable investment outlook. The company's recent performance has also been lackluster, with a year-to-date return of -15.01% compared to a 2.44% gain in the S&P 500, reinforcing the notion that it is currently overvalued.