Is Bank OZK overvalued or undervalued?

As of 31 October 2025, the valuation grade for Bank OZK has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears undervalued, particularly when considering its P/E ratio of 7, which is significantly lower than the industry average, and its Price to Book Value of 0.89, suggesting that the stock is trading below its book value. Additionally, the EV to EBITDA ratio stands at 3.86, further supporting the notion of undervaluation compared to peers.
In comparison to its peers, Bank OZK's P/E ratio is notably lower than First Horizon Corp. at 13.43 and SouthState Corp. at 15.16, both of which are classified as fair or very attractive, respectively. The company's dividend yield of 305.14% also stands out, indicating a strong return to shareholders. Despite recent underperformance relative to the S&P 500 over shorter time frames, with a 1-year return of 1.96% compared to the index's 19.89%, Bank OZK's long-term performance has been solid, with a 5-year return of 73.05%. This suggests potential for recovery and growth, reinforcing the valuation story.