Is Bank OZK overvalued or undervalued?

As of 31 October 2025, the valuation grade for Bank OZK has moved from attractive to very attractive. The company is currently undervalued, as indicated by its P/E ratio of 7, which is significantly lower than the peer average of approximately 12.9, and a Price to Book Value of 0.89. Additionally, Bank OZK's EV to EBITDA ratio stands at 3.86, further supporting the undervaluation narrative when compared to peers like SouthState Corp., which has a higher valuation metrics across the board.
In terms of performance, Bank OZK has shown a YTD return of 1.03%, while the S&P 500 has returned 16.30% during the same period, indicating underperformance. However, over a 5-year horizon, Bank OZK's return of 81.56% is notable, although it still trails behind the S&P 500's 109.18%. Overall, the combination of strong valuation ratios and the recent grade change suggests that Bank OZK presents a compelling investment opportunity.