Is Bank OZK overvalued or undervalued?

As of 31 October 2025, the valuation grade for Bank OZK moved from attractive to very attractive, indicating a strong positive shift in its valuation outlook. Based on the metrics provided, Bank OZK appears to be undervalued, particularly with a P/E ratio of 7, a Price to Book Value of 0.89, and an EV to EBITDA of 3.86. In comparison, peer SouthState Corp. has a P/E ratio of 15.16, while First Horizon Corp. stands at 13.43, highlighting Bank OZK's relative undervaluation.
Despite recent stock performance lagging behind the S&P 500, with a 1Y return of 2.83% compared to the S&P's 19.89%, the company's strong fundamentals, including a high ROCE of 19.95% and a substantial dividend yield of 305.14%, suggest that it may offer significant upside potential moving forward.