Is Bank OZK overvalued or undervalued?

As of 14 April 2025, the valuation grade for Bank OZK has moved from very attractive to attractive. The company is currently considered undervalued, with a P/E ratio of 7, significantly lower than the industry average, which is reflected in its peer comparison. For instance, Home Bancshares, Inc. has a P/E ratio of 12.98, indicating that Bank OZK is trading at a discount relative to its peers.
In addition to the P/E ratio, Bank OZK's Price to Book Value stands at 0.89, and it boasts a robust ROCE of 19.95%. The company's strong dividend yield of 305.14% further supports its undervaluation narrative. While Bank OZK has performed well recently, with a 1-year stock return of 19.40% compared to the S&P 500's 10.26%, the valuation metrics suggest that there is still room for growth and appreciation in its stock price.