Is Sierra Bancorp overvalued or undervalued?

As of 22 May 2025, the valuation grade for Sierra Bancorp has moved from fair to attractive, indicating a more favorable assessment of its value. The company is currently considered undervalued, with a P/E ratio of 9, a Price to Book Value of 1.08, and an EV to EBITDA of 9.45. These metrics suggest that Sierra Bancorp is trading at a discount compared to its peers.
In comparison to its industry, Sierra Bancorp's P/E ratio is significantly lower than that of Macatawa Bank Corp., which stands at 12.42, and Peoples Financial Services Corp. at 13.04, both of which are categorized as expensive. Additionally, the PEG ratio for Sierra Bancorp is 0.56, indicating strong growth potential relative to its valuation. Notably, Sierra Bancorp has outperformed the S&P 500 over the past year, with a return of 36.94% compared to the index's 10.26%, reinforcing the attractiveness of its current valuation.