Latest Ratios: P/E Ratio 21.4x · EV/EBITDA 15.4x · ROE 7.8%. (2007–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $663M | $441M | $409M | $348M | $408M | $405M | $283M | $625M | $391M | $458M | $346M |
| Enterprise Value | $737M | $515M | $348M | $687M | $560M | $135M | $76M | $509M | $97M | $189M | $-348284309 |
| P/E Ratio → | 21.38 | 14.04 | 16.59 | 14.97 | 8.17 | 12.83 | — | 23.49 | 33.10 | — | 21.63 |
| P/S Ratio | 4.33 | 2.88 | 3.09 | 2.53 | 2.57 | 3.03 | 2.21 | 5.14 | 3.27 | 4.27 | 3.46 |
| P/B Ratio | 1.60 | 1.05 | 1.06 | 0.99 | 1.24 | 0.99 | 0.64 | 1.32 | 0.90 | 1.06 | 0.80 |
| P/FCF | 20.85 | 13.88 | 14.19 | 9.42 | 6.29 | 5.87 | — | 20.94 | 11.24 | 11.24 | 10.89 |
| P/OCF | 16.64 | 11.08 | 11.07 | 7.45 | 5.76 | 5.23 | 36.71 | 16.32 | 7.92 | 10.34 | 10.61 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.36 | 2.63 | 4.99 | 3.52 | 1.01 | 0.59 | 4.19 | 0.81 | 1.76 | -3.47 |
| EV / EBITDA | 15.39 | 10.76 | 9.17 | 19.64 | 8.26 | 3.21 | — | 15.37 | 5.41 | — | -16.66 |
| EV / EBIT | 18.42 | 12.87 | 11.26 | 23.91 | 9.07 | 3.77 | — | 18.32 | 6.80 | — | -19.76 |
| EV / FCF | — | 16.19 | 12.07 | 18.60 | 8.62 | 1.95 | — | 17.06 | 2.80 | 4.64 | -10.95 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.7% | 61.7% | 57.3% | 62.0% | 87.1% | 84.1% | 67.1% | 70.2% | 65.2% | 44.4% | 56.3% |
| Operating Margin | 15.7% | 15.7% | 12.9% | 13.6% | 34.4% | 22.8% | -27.5% | 16.5% | 9.1% | -12.6% | 12.0% |
| Net Profit Margin | 12.3% | 12.3% | 10.2% | 11.0% | 28.0% | 20.2% | -28.0% | 15.8% | 7.5% | -0.5% | 10.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.8% | 7.8% | 6.7% | 6.9% | 13.6% | 7.5% | -10.0% | 5.8% | 2.7% | -0.2% | 3.7% |
| ROA | 0.7% | 0.7% | 0.5% | 0.5% | 1.2% | 0.8% | -1.1% | 0.7% | 0.3% | -0.0% | 0.3% |
| ROIC | 5.7% | 5.7% | 3.9% | 3.4% | 9.8% | 6.0% | -7.1% | 4.5% | 2.5% | -3.2% | 3.1% |
| ROCE | 7.0% | 7.0% | 4.8% | 4.3% | 12.5% | 7.7% | -9.0% | 5.8% | 3.2% | -4.1% | 4.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.43 | 0.43 | 0.18 | 1.12 | 0.60 | 0.02 | 0.08 | 0.02 | — | — | — |
| Debt / EBITDA | 3.73 | 3.73 | 1.85 | 11.25 | 2.93 | 0.17 | — | 0.30 | — | — | — |
| Net Debt / Equity | — | 0.17 | -0.16 | 0.96 | 0.46 | -0.66 | -0.47 | -0.24 | -0.67 | -0.62 | -1.60 |
| Net Debt / EBITDA | 1.53 | 1.53 | -1.61 | 9.69 | 2.24 | -6.46 | — | -3.50 | -16.33 | — | -33.23 |
| Debt / FCF | — | 2.31 | -2.12 | 9.18 | 2.34 | -3.92 | — | -3.88 | -8.45 | -6.60 | -21.84 |
| Interest Coverage | 0.39 | 0.39 | 0.29 | 0.39 | 3.05 | 1.57 | -1.26 | 0.59 | 0.38 | -0.49 | 0.38 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.12 | 0.12 | 0.20 | 0.22 | 0.24 | 0.32 | 0.28 | 0.25 | 0.30 | 0.33 | 0.21 |
| Quick Ratio | 0.12 | 0.12 | 0.20 | 0.22 | 0.24 | 0.32 | 0.28 | 0.25 | 0.30 | 0.33 | 0.21 |
| Cash Ratio | 0.02 | 0.02 | 0.03 | 0.01 | 0.01 | 0.08 | 0.07 | 0.04 | 0.08 | 0.07 | 0.17 |
| Asset Turnover | — | 0.05 | 0.05 | 0.05 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | 1.3% | — | — | — | 2.3% |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | 49.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.7% | 7.1% | 6.0% | 6.7% | 12.2% | 7.8% | — | 4.3% | 3.0% | — | 4.6% |
| FCF Yield | 4.8% | 7.2% | 7.0% | 10.6% | 15.9% | 17.0% | — | 4.8% | 8.9% | 8.9% | 9.2% |
| Buyback Yield | 3.0% | 4.5% | 0.0% | 4.7% | 10.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 3.0% | 4.5% | 0.0% | 4.7% | 10.5% | 0.0% | 1.3% | 0.0% | 0.0% | 0.0% | 2.3% |
| Shares Outstanding | — | $22M | $23M | $23M | $25M | $26M | $26M | $26M | $26M | $26M | $26M |
Includes 30+ ratios · 19 years · Updated daily
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Quick answers to the most common questions about buying CARE stock.
Carter Bankshares, Inc.'s current P/E ratio is 21.4x. The historical average is 14.1x. This places it at the 82th percentile of its historical range.
Carter Bankshares, Inc.'s current EV/EBITDA is 15.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.5x.
Carter Bankshares, Inc.'s return on equity (ROE) is 7.8%. The historical average is 5.7%.
Based on historical data, Carter Bankshares, Inc. is trading at a P/E of 21.4x. This is at the 82th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Carter Bankshares, Inc. has 61.7% gross margin and 15.7% operating margin. Operating margin between 10-20% is typical for established companies.
Carter Bankshares, Inc.'s Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
CRE concentration and litigation
Metrics are mathematically derived from official filings.
Premium Priced, Thin Returns
CARE trades at 1.67x book and 22.25x trailing earnings, per market data, yet ROE of 5.5% in 2026Q2 lags peers, implying the market prices in a recovery that has yet to materialize.
The P/B of 1.67x is a premium to the peer median of roughly 1.3x, but the bank's ROTCE is depressed by low NIM and volatile provisions. The forward P/E of 4.84x suggests the market expects a sharp earnings rebound, likely from normalized credit costs and margin expansion. However, given the persistent low ROE, the premium valuation appears to rely on a successful resolution of legacy credit issues and a return to mid-teens returns, which is not yet evident in the data.
ROE Volatility Masks Core Earnings
ROE swung from 18.6% in 2026Q1 to 5.5% in 2026Q2, as per the financial statements, driven by a $34.1M provision benefit that reversed, highlighting the distortion from credit costs and one-time gains.
The DuPont decomposition shows that the bank's ROE is highly sensitive to non-interest income and provision swings. In 2026Q1, fee income spiked to 54.5% of revenue, likely from securities gains, inflating ROE. Excluding these items, core profitability appears thin, with NIM at 0.8% and efficiency ratio at 33.2% in 2026Q2. The low NIM suggests asset yields are not covering funding costs adequately, and the bank's reliance on non-recurring items raises questions about earnings quality.
NIM Stuck at 0.8%, Efficiency Improves
Net interest margin remained at 0.8% in 2026Q2, unchanged from the prior quarter, according to the income statement, while the efficiency ratio improved to 33.2% from 48.1% in 2025Q4, indicating cost control.
The stable NIM suggests that the bank is not benefiting from loan repricing, possibly due to competitive deposit costs and a securities-heavy balance sheet. The efficiency ratio improvement is notable, but it may be flattered by the spike in non-interest income in 2026Q1. Excluding that, the efficiency ratio would be higher, indicating that core operating leverage is less favorable than it appears. The bank's ability to maintain NIM will depend on deposit beta management and loan growth in a competitive Virginia market.
Capital Strengthens, ROE Remains Low
Equity rose to $539.1M in 2026Q2, up 34% year-over-year, with equity-to-assets at 11%, as per the balance sheet, but ROE of 5.5% remains below peers, indicating capital is not being deployed efficiently.
The bank's capital position appears robust, with a low debt-to-equity ratio of 0.43% and a high cash buffer, suggesting a conservative posture. However, the high equity base, combined with low NIM, dilutes ROE. The bank's capital adequacy ratios are not disclosed, but the equity-to-assets ratio of 11% is above the peer average, providing a cushion for credit losses. The challenge is to deploy this capital into higher-yielding assets without taking on excessive risk, especially given the CRE concentration.
Provision Swings Signal Credit Uncertainty
Loan loss provisions swung from a $34.1M benefit in 2026Q1 to a $1.5M charge in 2026Q2, as reported in the income statement, indicating volatile credit costs and potential idiosyncratic risks.
The negative provision in 2026Q1 likely reflects recoveries or improved economic outlook, but the subsequent charge suggests that credit conditions may be deteriorating. The bank's historical issues with large commercial borrowers, such as the Justice family, remain a concern. The lack of disclosed NPL and charge-off data makes it difficult to assess reserve adequacy, but the volatility in provisions warrants close monitoring. Investors should watch for any new developments in litigation or credit quality that could lead to further charges.
P/E Misleads on Earnings Quality
The trailing P/E of 22.25x is distorted by volatile provisions and one-time gains, as per the financial data, obscuring the bank's true earnings power; a better metric is P/TBV with adjustments for AOCI.
For banks, P/E is often misapplied because earnings can be heavily influenced by provision for credit losses, which are management estimates. CARE's earnings have been volatile, with a $34.1M provision benefit in 2026Q1 inflating net income. The forward P/E of 4.84x assumes a normalization that may not occur. Instead, investors should focus on P/TBV, which is 1.27x based on tangible book value of $24.60, and adjust for unrealized losses in the securities portfolio (AOCI) to get a clearer picture of the bank's intrinsic value. This approach better captures the bank's asset quality and capital position.