Stock fact sheet · data as of
Eastern Bankshares, Inc. (EBC): fair value, margin of safety and Wheel Score
Financial Services · Banks - Regional · United States · Defensive
Is EBC undervalued?
At 21.14 (close of 16 Oct 2026), EBC trades 12% under the GLS average fair value of 23.98. 4 of the 9 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
The 9 models disagree widely: GLS Growth gives 2.98 while Graham Growth gives 52.45. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files EBC under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for EBC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 14.62 | -31% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 27.58 | +30% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 52.45 | +148% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 19.50 | -8% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 2.98 | -86% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 38.74 | +83% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 32.53 | +54% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 8.24 | -61% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 19.14 | -9% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -112.03 | -630% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 26.00 | +23% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health EBC scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 5.0 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are thin or negative - ROIC 1.9%, ROE 2.0%, ROA 0.3% - with debt at 0.05 times equity and a free-cash-flow yield of 8.1%.
The dividend yield is 2.65% at a payout ratio of 31%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Investment Advisory Fees 51%, Service Charge On Deposit Accounts 26%, Card Income 16% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 1.9% |
|---|---|---|---|
| GLS Moat | 5.0 / 10 | ROE | 2.0% |
| Debt / equity | 0.05 | ROA | 0.3% |
| Free-cash-flow yield | 8.1% | Payout ratio | 31% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 79: Good
EBC scores 79 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 17/25), Piotroski health (16/20), the GLS moat (8/15), the option premium on offer (19/20) and how easily the stock trades (19/20). Moat (8/15) is the part holding the score back.
Implied volatility is 62% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (19 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 661 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 2.4M shares a day on a market cap of $4.8B, with a beta of 0.70 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 17 / 25 | 12% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 8 / 15 | moat 5.0/10 | |
| Premium | 19 / 20 | implied volatility 62% | |
| Stability | 19 / 20 | 2.4M shares/day, $4.8B cap, beta 0.70 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Eastern Bankshares, Inc. reports earnings on 22 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Banks - Regional
The 12 companies below are the closest to Eastern Bankshares, Inc. by market cap within the Banks - Regional industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ASB Associated Banc-Corp | 28.84 | 42.73 | +33% | 79Good | $4.8B |
| OZKAP Bank OZK | 15.10 | 75.93 | +80% | 39No options | $4.9B |
| OZK Bank OZK | 44.93 | 118.53 | +62% | 86Prime | $4.9B |
| AX Axos Financial, Inc. | 87.52 | 213.10 | +59% | 82Prime | $5.0B |
| FLG Flagstar Financial, Inc. | 11.25 | 4.98 | -126% | 52Fair | $4.7B |
| FINN First National of Nebraska, Inc. | 19,000.00 | 59,493.42 | +68% | 39No options | $5.1B |
| TFSL TFS Financial Corporation | 16.18 | 7.83 | -107% | 45Weak | $4.5B |
| FFIN First Financial Bankshares, Inc. | 31.59 | 25.52 | -24% | 63Fair | $4.5B |
| VLYPO Valley National Bancorp | 24.47 | 32.59 | +25% | 39No options | $5.3B |
| ABCB Ameris Bancorp | 79.74 | 79.07 | -1% | 73Good | $5.4B |
| VLYPP Valley National Bancorp | 24.88 | 32.99 | +25% | 39No options | $5.4B |
| FULTP Fulton Financial Corporation | 16.63 | 26.24 | +37% | 39No options | $4.3B |
⚖ Compare EBC with 7 of them All Financial Services stocks →
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Start free See the Sunday ScanQuestions about EBC
Is EBC undervalued right now?
By the GLS models, moderately: at 21.14 the stock trades 12% below the average fair value of 23.98 (data as of 16 Oct 2026).
What is the Wheel Score of EBC and what does it mean?
EBC scores 79 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for EBC?
23.98 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Eastern Bankshares, Inc. report earnings next?
The next earnings report is due on 22 Oct 2026 (after the close), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does EBC have listed options, and how liquid are they?
Yes. The nightly snapshot found 82 listed contracts with 661 open interest across all expiries and implied volatility of 62% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.