Eastern Bankshares, Inc. (EBC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-31.5%

$15.70

vs $22.93 price

Levered DCF

$43.25

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

-0.49

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	46.07×	26.14×	9.93×	14.26×	22.41×	125.46×	18.98×	20.95×
P/B	0.91×	0.87×	0.77×	1.16×	1.02×	0.82×	1.6×	1.78×
P/S	3.75×	2.92×	4.12×	4.19×	6.63×	4.81×	4.1×	4.31×
EV / EBITDA	23.61×	11.14×	-16.13×	13.04×	11.44×	12.17×	12.5×	14.71×
Gross margin	65.8%	62.0%	52.4%	91.9%	100.8%	91.3%	93.6%	93.2%
Operating margin	9.4%	14.5%	-22.6%	34.9%	33.6%	6.2%	28.0%	26.6%
Net margin	8.3%	11.2%	41.6%	29.3%	29.5%	3.9%	21.7%	20.7%
Current ratio	0.03×	0.25×	0.3×	0.36×	0.51×	0.44×	0.2×	0.18×
Debt / equity	0.05×	0.01×	0.01×	0.29×	0.01×	0.01×	0.15×	0.22×
Interest coverage	0.3×	0.46×	-0.51×	6.42×	33.01×	2.97×	5.17×	6.27×
Dividend yield	2.7%	2.6%	2.9%	2.3%	1.5%	0.0%	0.0%	0.0%
Payout ratio	119.8%	69.0%	28.7%	33.0%	33.3%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	2.0%	3.3%	7.8%	8.1%	4.5%	0.7%	8.4%	8.6%
Return on invested capital	1.7%	2.8%	-1.8%	5.1%	3.7%	0.6%	6.5%	6.2%
Return on assets	0.3%	0.5%	1.1%	0.9%	0.7%	0.1%	1.2%	1.1%
Free cash flow yield	10.4%	8.7%	11.0%	7.8%	4.9%	2.3%	7.4%	7.7%
Earnings yield	2.2%	3.8%	10.1%	7.0%	4.5%	0.8%	5.3%	4.8%
Enterprise value	$3.8B	$2.2B	$1.7B	$3.4B	$2.3B	$776.2M	$2.4B	$2.6B
Net debt / EBITDA	-0.72×	-4.95×	6.38×	2.13×	-6.02×	-31.75×	-0.66×	0.34×
Cash conversion cycle (days)	0	0	0	0	0	0	0	0