Is Eastern Bankshares, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Eastern Bankshares, Inc. has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued, particularly given its Price to Book Value of 0.88 and an EV to Sales ratio of 2.54, which suggests that the market is pricing the company at a premium relative to its tangible assets and sales. Additionally, the negative ROCE and ROE of -3.82% highlight ongoing financial struggles.
In comparison to its peers, Ameris Bancorp has a fair valuation with a P/E ratio of 13.35, while BancFirst Corp. also maintains a fair valuation with a P/E of 19.27. These ratios further emphasize Eastern Bankshares' unfavorable position in the market. Over the past year, Eastern Bankshares has returned 5.88%, significantly lagging behind the S&P 500's return of 19.89%, reinforcing the notion that the stock is overvalued relative to its performance.