Is Stellar Bancorp, Inc. overvalued or undervalued?

As of 30 January 2025, Stellar Bancorp, Inc. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued at this time. Key ratios include a P/E ratio of 12, a Price to Book Value of 0.89, and an EV to EBITDA of 7.12. In comparison, its peer Pathward Financial, Inc. has a P/E of 9.68, indicating that Stellar is priced higher relative to its earnings.
The company's return on equity (ROE) stands at 7.21%, while the return on capital employed (ROCE) is 9.44%, which are moderate figures in the context of its valuation. Notably, Stellar's dividend yield is exceptionally high at 92.24%, which may attract income-focused investors despite its recent performance lagging behind the S&P 500 over longer periods. Overall, the analysis suggests that Stellar Bancorp, Inc. is fairly valued in the current market environment.