Is ServisFirst Bancshares, Inc. overvalued or undervalued?

As of 12 May 2025, the valuation grade for ServisFirst Bancshares, Inc. has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 17, a Price to Book Value of 2.46, and an EV to EBITDA of 10.62. In comparison to peers, Home Bancshares, Inc. has a P/E of 12.98, while Bank OZK shows a P/E of 7.07, indicating that ServisFirst is trading at a premium relative to these competitors.
Despite a strong return on capital employed (ROCE) of 40.49% and a PEG ratio of 0.83, which suggests growth potential, the high valuation ratios compared to peers signal that the stock may not offer sufficient upside. Additionally, while ServisFirst has outperformed the S&P 500 over the past year with a return of 29.74% compared to 10.26%, the overall valuation metrics suggest that the stock is currently overvalued in the market.