Is Third Coast Bancshares, Inc. overvalued or undervalued?

As of 5 September 2025, the valuation grade for Third Coast Bancshares, Inc. moved from attractive to very attractive. The company appears to be undervalued, supported by a P/E ratio of 8, a Price to Book Value of 0.89, and an EV to EBITDA of 2.96. In comparison to peers, TrustCo Bank Corp. NY has a P/E of 14.54, while Southern Missouri Bancorp, Inc. stands at 11.64, indicating that Third Coast Bancshares is trading at a significant discount relative to its competitors.
Additionally, the company has demonstrated strong performance with a return on capital employed (ROCE) of 25.06% and a return on equity (ROE) of 10.61%. Over the past year, Third Coast Bancshares has returned 52.02%, significantly outperforming the S&P 500's return of 17.14%, reinforcing the notion that the stock is undervalued.