Is Eastern Bankshares, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Eastern Bankshares, Inc. moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company appears to be overvalued based on its current metrics, particularly with a Price to Book Value of 0.88 and a troubling EV to EBIT of -22.40, which suggests that the company is not generating positive earnings relative to its enterprise value. Additionally, the EV to Capital Employed ratio stands at 0.86, further emphasizing the inefficiency in capital utilization.
In comparison to its peers, Eastern Bankshares, Inc. is notably lagging; for instance, Ameris Bancorp has a fair valuation with a P/E ratio of 13.35, while ServisFirst Bancshares, Inc. is categorized as expensive with a P/E ratio of 18.91. This stark contrast highlights the challenges Eastern Bankshares faces in terms of profitability and market perception. Although recent stock performance data is unavailable, the context of its valuation suggests that it is not positioned favorably against broader market benchmarks like the S&P 500.