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, indicating a deterioration in perceived value. The company appears to be overvalued given its current financial metrics, particularly with a Price to Book Value of 0.88 and a troubling EV to EBIT of -22.40. Additionally, the company has a negative ROCE and ROE of -3.82%, further underscoring its financial challenges.
In comparison to its peers, Eastern Bankshares, Inc. stands out unfavorably; for instance, Ameris Bancorp has a fair valuation with a P/E of 13.35, while BancFirst Corp. also holds a fair valuation with a P/E of 19.27. This stark contrast highlights the difficulties Eastern Bankshares faces in the regional banking sector. Despite a recent one-week stock return of 4.25% compared to the S&P 500's 1.05%, the longer-term performance shows a concerning trend, with a three-year return of -11.89% against the S&P 500's 70.41%, reinforcing the notion that the stock is currently overvalued.