Is Simmons First National Corp. overvalued or undervalued?

As of 17 July 2025, the valuation grade for Simmons First National Corp. has moved from fair to very attractive, indicating a significant improvement in its valuation outlook. The company appears to be undervalued, particularly when considering its P/E ratio of 16, which is lower than the peer average of 18.79 for companies like UMB Financial Corp. and significantly below the industry average. Additionally, the Price to Book Value stands at 0.68, suggesting that the stock is trading at a discount relative to its book value, while the EV to EBITDA ratio of 18.91 further supports the notion of undervaluation compared to peers.
In comparison to its peers, Simmons First National Corp. has a more favorable valuation profile than Old National Bancorp, which has a P/E of 15.09, and Cadence Bank at 12.46, both of which are considered risky or fair. Despite recent struggles, with a year-to-date return of -8.16% compared to the S&P 500's 12.22%, the long-term outlook remains promising, as evidenced by a 5-year return of 25.82%, although this still lags behind the S&P 500's 96.61% over the same period.