Is First Financial Bankshares, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for First Financial Bankshares, Inc. has moved from fair to expensive. The company appears to be overvalued, particularly when considering its P/E ratio of 23, which is higher than peers such as Comerica, Inc. with a P/E of 21.53 and Zions Bancorporation, NA at 10.08. Additionally, the Price to Book Value stands at 3.13, and the EV to EBIT ratio is 16.34, both indicating a premium valuation compared to its peers.
In terms of performance, First Financial Bankshares has underperformed relative to the S&P 500, with a year-to-date return of -0.64% compared to the index's 12.22%. Over the past three years, the company has seen a decline of 16.76%, while the S&P 500 has gained 70.41%. This underperformance reinforces the notion that the stock may be overvalued in the current market environment.