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 deterioration in its valuation outlook. The company is overvalued, particularly highlighted by its Price to Book Value of 0.88 and a troubling EV to EBIT of -22.40, which suggests inefficiencies in generating earnings relative to its enterprise value. Additionally, the EV to EBITDA ratio stands at -33.26, further emphasizing the company's struggles.
In comparison to its peers, Eastern Bankshares, Inc. shows stark contrasts; for instance, Ameris Bancorp has a fair valuation with a P/E of 13.35, while International Bancshares Corp. is very attractive with a P/E of 16.50. The company's recent stock performance has been underwhelming, with a YTD return of -1.80% compared to the S&P 500's 16.30%, reinforcing the notion that it is overvalued in the current market context.