Is Third Coast Bancshares, Inc. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Third Coast Bancshares, Inc. has moved from attractive to very attractive, indicating a strong positive outlook. 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. shows a P/E of 11.64, highlighting Third Coast's favorable valuation metrics.
The company's recent performance has outpaced the S&P 500, with a year-to-date return of 18.65% compared to the S&P 500's 13.31%. This strong performance, along with its attractive valuation ratios, reinforces the conclusion that Third Coast Bancshares, Inc. is indeed undervalued in the current market.