Is Pinnacle Financial Partners, Inc. overvalued or undervalued?

As of 14 April 2025, the valuation grade for Pinnacle Financial Partners, Inc. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 17, a Price to Book Value of 1.28, and an EV to EBITDA of 12.93, which align closely with industry standards.
In comparison to its peers, Pinnacle Financial's P/E ratio of 17 is higher than East West Bancorp, Inc. at 12.82 and First Horizon Corp. at 12.18, both of which are rated as fair. This suggests that while Pinnacle is fairly valued, it may not be as attractive as some of its peers. Notably, Pinnacle has outperformed the S&P 500 over the past year with a return of 40.39% compared to the index's 10.26%, indicating strong market performance despite its current valuation status.