Is Third Coast Bancshares, Inc. overvalued or undervalued?

As of 29 April 2025, the valuation grade for Third Coast Bancshares, Inc. has moved from very attractive to attractive. The company is currently assessed as undervalued, with a P/E ratio of 8, a Price to Book Value of 0.89, and an EV to EBITDA ratio of 2.96. In comparison, Provident Financial Services, Inc. has a P/E ratio of 11.44, while OceanFirst Financial Corp. stands at 10.75, indicating that Third Coast Bancshares is trading at a significant discount relative to its peers.
The company's strong ROCE of 25.06% and ROE of 10.61% further support its undervaluation. Despite a year-to-date return of -5.95%, Third Coast Bancshares has outperformed the S&P 500 over the past year with a remarkable 63.41% return, reinforcing the potential for future growth and value realization.