Is Southern States Bancshares, Inc. overvalued or undervalued?

As of 12 May 2025, the valuation grade for Southern States Bancshares, Inc. has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a P/E ratio of 9, which is notably lower than its peers such as Northrim BanCorp, Inc. at 11.25 and USCB Financial Holdings, Inc. at 11.41. Additionally, the EV to EBITDA ratio stands at 4.25, further supporting the undervaluation narrative.
Southern States Bancshares demonstrates strong financial metrics, including a ROCE of 29.58% and a ROE of 12.79%, which are indicative of effective capital utilization and profitability. Compared to its peers, the company's PEG ratio of 3.81 suggests that while growth expectations may be high, the current valuation does not reflect this potential. Recent stock performance has also been favorable, with a 1-year return of 39.51% compared to the S&P 500's 10.26%, reinforcing the attractiveness of the investment.