Is Southside Bancshares, Inc. overvalued or undervalued?

As of 12 May 2025, the valuation grade for Southside Bancshares, Inc. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently considered undervalued, with a P/E ratio of 11, which is competitive compared to peers like S&T Bancorp, Inc. at 10.83 and Veritex Holdings, Inc. at 13.04. Additionally, Southside Bancshares boasts a Price to Book Value of 1.25 and an EV to EBITDA ratio of 12.95, suggesting it is trading at reasonable multiples relative to its earnings and asset value.
In comparison to its peers, Southside Bancshares stands out with a PEG ratio of 1.53, indicating growth potential relative to its valuation. The company's dividend yield of 3.67% further enhances its attractiveness to income-focused investors. Despite a year-to-date return of -9.04%, the stock has shown resilience with a 1-year return of 10.18%, slightly trailing the S&P 500's 10.26% return over the same period. Overall, Southside Bancshares, Inc. presents a compelling investment opportunity as it is undervalued relative to its peers and market conditions.