Is Third Coast Bancshares, Inc. overvalued or undervalued?

As of 19 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 ratio 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, indicating that Third Coast is trading at a significant discount relative to these competitors.
Additionally, the company's strong return metrics further bolster its valuation case, with a year-to-date return of 17.94% compared to the S&P 500's 13.31%, and a remarkable one-year return of 45.6% versus the S&P 500's 16.64%. This performance suggests that the market may not fully recognize the value of Third Coast Bancshares, reinforcing the conclusion that it is undervalued.