Prosperity BancsharesPB -3.37%75 PEG Ratio is 2.88 as of Jul. 04, 2026, which is 29% above its 10-year median of 2.24. GuruFocus rates PB with a GF Score™ of 75/100 and a GF Value™ of $79.87 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,228 Banks companies, Prosperity Bancshares ranks worse than 71.82% on this metric.
PE Ratio without NRI / 5-Year Book Value Growth Rate*
* The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for Prosperity Bancshares's PEG Ratio or its related term are showing as below:
PB'
s PEG Ratio Range Over the Past 10 Years
Min: 1.3 Med: 2.24 Max: 3.71
Current: 2.88
During the past 13 years, Prosperity Bancshares's highest PEG Ratio was 3.71. The lowest was 1.30. And the median was 2.24.
PB's PEG Ratio is ranked worse than 71.82% of 1228
companies
in the Banks industry
Industry Median: 1.53
vs PB: 2.88
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
Prosperity Bancshares (NYSE:PB) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Prosperity Bancshares's PEG Ratio, along with its competitors' market caps and PEG Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Prosperity Bancshares PEG Ratio vs Banks Industry
For the Banks industry and Financial Services sector, Prosperity Bancshares's PEG Ratio distribution charts can be found below:
* The bar in red indicates where Prosperity Bancshares's PEG Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note: The 5-Year Book Value Growth Rate is the 5-year average Book Value per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
Prosperity Bancshares (PB) has a PEG Ratio of 2.88 as of Jul. 04, 2026. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Prosperity Bancshares and its competitors. This is 29% above median its historical median of 2.24. Over the past decade, Prosperity Bancshares' PEG Ratio has ranged from 1.30 to 3.71. According to the industry distribution chart, Prosperity Bancshares ranks #882 out of 1228 companies in the Banks industry, placing it in the top 71.8%.
Is Prosperity Bancshares' PEG Ratio too high?
Prosperity Bancshares' current PEG Ratio of 2.88 is 29% above median its 10-year median of 2.24. Over the past 10 years, this metric has ranged from a low of 1.30 to a high of 3.71. The Banks industry median PEG Ratio is 1.53. Prosperity Bancshares' value of 2.88 is 88.2% above this industry median. Based on the distribution chart, Prosperity Bancshares ranks #882 out of 1228 companies in the Banks industry, which is below the industry midpoint. Overall, Prosperity Bancshares has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Prosperity Bancshares' PEG Ratio compare to CBC and FNB?
According to the Banks industry distribution chart, Prosperity Bancshares ranks #882 out of 1228 companies for PEG Ratio. This places Prosperity Bancshares in the lower half of its industry. The industry median PEG Ratio is 1.53. Prosperity Bancshares' value of 2.88 is 88.2% above this benchmark. Historically, Prosperity Bancshares' own PEG Ratio has ranged from 1.30 to 3.71 over the past decade. While the company's 10-year median is 2.24 vs. the industry median of 1.53, Prosperity Bancshares has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good PEG Ratio for a Banks company?
The median PEG Ratio among Banks companies is 1.53, based on 1,228 companies in the industry. Companies in the top quartile (top 25%) have a PEG Ratio significantly above this median, while those in the bottom quartile fall well below. However, PEG Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Prosperity Bancshares's current PEG Ratio of 2.88 is 88.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high PEG Ratio mean?
A high PEG Ratio can signal that a stock is expensive relative to its fundamentals. Price-earnings to growth ratio is the ratio of price-earnings to a company's earnings growth rate. View historical data on Prosperity Bancshares and its competitors. For the Banks industry, the median PEG Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prosperity Bancshares's current PEG Ratio is 2.88, which is 29% above median its own 10-year median of 2.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prosperity Bancshares stock overvalued right now?
Based on GuruFocus' analysis, Prosperity Bancshares (PB) is currently considered Modestly Undervalued. The stock's GF Value™ is $79.87, compared to a current price of $70.90 — trading 11.2% below its estimated fair value. The current PEG Ratio is 2.88, which is 29% above median its 10-year median of 2.24 and 88.2% above the Banks industry median of 1.53. Prosperity Bancshares' overall GF Score™ is 75/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PEG Ratio calculated?
PEG Ratio is calculated from a company's financial statements. For Prosperity Bancshares (PB), the current PEG Ratio is 2.88 as of Jul. 04, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Prosperity Bancshares (PB) Overvalued in 2026?
Based on GuruFocus' analysis, Prosperity Bancshares stock appears to be undervalued.
The current stock price of $70.90 is trading 11.2% below its estimated GF Value™ of $79.87.
GuruFocus considers Prosperity Bancshares to be Modestly Undervalued.
Key valuation signals for PB:
PEG Ratio: 2.88 (29% above median its 10-year median of 2.24)
GF Value™: $79.87 vs. price of $70.90 (11.2% below fair value)
Industry Position: 88.2% above the Banks median (#882 of 1228)
No single metric tells the full story. See the PB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prosperity Bancshares Inc provides retail and commercial banking services to individuals and small to midsize businesses. It provides a wide array of financial products and services to businesses and consumers throughout Texas and Oklahoma. The bank provides Personal, Business, Mortgage, and Banking Services.
75GF Score
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