Is Bank OZK overvalued or undervalued?

As of 17 October 2025, the valuation grade for Bank OZK has moved from very attractive to attractive. Based on the current metrics, the company appears to be undervalued. The P/E ratio stands at 7, significantly lower than the peer average of 8.30, while the Price to Book Value is 0.89, indicating potential upside relative to its book value. Additionally, the EV to EBITDA ratio of 3.86 further supports the undervaluation thesis compared to peers like SouthState Corp. with a higher valuation of 15.16.
In terms of peer comparison, First Horizon Corp. has a P/E of 13.43, while Western Alliance Bancorp. shows a P/E of 11.90, both indicating that Bank OZK is trading at a discount relative to its peers. Despite recent struggles, with a 1-week return of -5.88% compared to the S&P 500's 1.70%, Bank OZK has shown resilience with a 5-year return of 113.17%, outperforming the S&P 500's 91.29% over the same period.