Is Sierra Bancorp overvalued or undervalued?

As of 24 October 2025, the valuation grade for Sierra Bancorp has moved from fair to attractive, indicating a more favorable assessment of its market position. Based on the current metrics, the company appears undervalued, particularly with a P/E ratio of 9, a Price to Book Value of 1.08, and a PEG ratio of 0.56, all suggesting that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Guaranty Bancshares, Inc. has a significantly higher P/E ratio of 18.33, while Peoples Financial Services Corp. boasts a PEG ratio of 0.14, highlighting Sierra Bancorp's relative value proposition in the regional banks sector. Despite its recent stock performance trailing behind the S&P 500 over multiple periods, including a 1Y return of -4.51% versus the S&P 500's 16.90%, the long-term outlook remains positive with a 3Y return of 26.21%, indicating potential for recovery and growth.