Is Park National Corp. overvalued or undervalued?

As of 12 May 2025, the valuation grade for Park National Corp. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued based on its key financial ratios, including a P/E ratio of 18, an EV to EBITDA of 14.21, and a PEG ratio of 0.78. These metrics suggest that the stock is reasonably priced compared to its earnings growth potential.
In comparison to its peers, Park National Corp. has a lower P/E ratio than UMB Financial Corp. at 19.78 and is more competitively priced than First Financial Bankshares, Inc., which has a P/E of 21.84. The company’s return on capital employed (ROCE) stands at 15.50%, further supporting its valuation. Notably, over the past year, Park National Corp. has outperformed the S&P 500, returning 20.23% compared to the index's 10.26%, reinforcing the attractiveness of its current valuation.