Is Prosperity Bancshares, Inc. overvalued or undervalued?

As of 23 April 2025, the valuation grade for Prosperity Bancshares, Inc. has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued. Key ratios include a P/E ratio of 13, a Price to Book Value of 0.89, and a PEG Ratio of 0.71, all suggesting that the stock is trading below its intrinsic value compared to its earnings growth potential.
In comparison to its peers, Prosperity Bancshares has a more favorable valuation than East West Bancorp, Inc. with a P/E of 12.81, and First Horizon Corp. at 12.18, both of which are in the attractive and fair categories, respectively. Notably, the company's dividend yield of 3.20% also adds to its appeal for income-focused investors. Despite a year-to-date decline of 8.29% compared to a 2.44% gain in the S&P 500, the one-year return of 17.54% outpaces the index's 10.26%, reinforcing the notion that the stock may be undervalued at its current price of 69.10.