Is Sierra Bancorp overvalued or undervalued?

As of 27 June 2025, Sierra Bancorp's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 9, a Price to Book Value of 1.08, and an EV to EBITDA of 9.45, which suggest that while the company is not undervalued, it also does not appear to be overvalued at this time.
In comparison to its peers, Sierra Bancorp's P/E ratio is significantly lower than that of Macatawa Bank Corp., which has a P/E of 12.42, and Peoples Financial Services Corp. at 13.04, both of which are considered expensive. Additionally, the PEG ratio for Sierra Bancorp stands at 0.56, indicating potential growth relative to its price. Notably, the company's stock has outperformed the S&P 500 over the past year, returning 41.14% compared to the index's 12.59%, reinforcing its fair valuation status.