Is South Plains Financial, Inc. (Texas) overvalued or undervalued?

As of 26 August 2025, the valuation grade for South Plains Financial, Inc. has moved from expensive to fair. Based on the current metrics, the company appears fairly valued. The P/E ratio stands at 12, which is comparable to the peer average of 12.14, while the EV to EBITDA ratio is 2.13, indicating a favorable valuation relative to its earnings potential. Additionally, the Price to Book Value is 1.33, suggesting that the stock is trading at a reasonable premium over its book value.
In comparison to its peers, CrossFirst Bankshares, Inc. has a P/E ratio of 10.04, while Mercantile Bank Corp. shows a P/E of 9.69, both indicating that South Plains is slightly higher in valuation but still within a fair range. Notably, South Plains has outperformed the S&P 500 with a year-to-date return of 16.98% compared to the index's 12.22%, reinforcing the notion that the stock is performing well in the current market environment.