Is Columbia Banking System, Inc. overvalued or undervalued?

As of 14 April 2025, the valuation grade for Columbia Banking System, Inc. has moved from attractive to very attractive. The company is currently undervalued, with a P/E ratio of 9, which is significantly lower than its peer Home Bancshares, Inc. at 12.98 and Bank OZK at 7.07. Additionally, the price to book value stands at 0.97, indicating that the stock is trading close to its book value, while the EV to EBITDA ratio is 7.45, suggesting a favorable valuation compared to industry standards.
In comparison to its peers, Columbia Banking System, Inc. shows a PEG ratio of 1.94, which is higher than Bank OZK's 1.84, indicating that while it may have growth potential, it is priced higher relative to its earnings growth. The company's return on equity (ROE) is 10.67%, which is a solid performance metric. Despite recent stock performance showing a decline year-to-date of 15.20% compared to a 2.44% gain in the S&P 500, the overall valuation suggests that Columbia Banking System, Inc. presents a compelling investment opportunity at its current price of 22.91.