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Prosperity BancsharesFRA:PPY +0.79%77 Peter Lynch Fair Value is €26.01 as of Jul. 30, 2026, which is 100% below its 10-year median of 2.07. GuruFocus rates FRA:PPY with a GF Score™ of 77/100 and a GF Value™ of €70.71. The stock has 2 warning signs investors should review. Among 874 Banks companies, Prosperity Bancshares ranks worse than 114416.36% on this metric.
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Here, as of today, Prosperity Bancshares's PEG is 1. Prosperity Bancshares's 5-Year TTM Book Value Growth Rate is 5.33.
Prosperity Bancshares's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2026 was €4.88. Therefore, the Peter Lynch Fair Value for today is €26.01.
The historical rank and industry rank for Prosperity Bancshares's Peter Lynch Fair Value or its related term are showing as below:
During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Prosperity Bancshares was 2.77. The lowest was 1.35. And the median was 2.07.
FRA:PPY's Price-to-Peter-Lynch-Fair-Value is not ranked *
in the Banks industry.
Industry Median: 1.115 * Ranked among companies with meaningful Price-to-Peter-Lynch-Fair-Value only.
Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.
Prosperity Bancshares (FRA:PPY) Peter Lynch Fair Value Explanation
Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.
Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.
Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of Book Value per share over the past 5 years, which is 5.33 instead of 15 in this case.
Prosperity Bancshares's Price to Peter Lynch Fair Value Ratio for today is calculated as
Price to Peter Lynch Fair Value
=
Share Price
/
Peter Lynch Fair Value
=
64.00
/
26.01
=
2.46
* 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.
Prosperity Bancshares Peter Lynch Fair Value Related Terms
Prosperity Bancshares Peter Lynch Fair Value Historical Data
* Premium members only.
The historical data trend for Prosperity Bancshares's Peter Lynch Fair Value can be seen below:
* 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.
Prosperity Bancshares Peter Lynch Fair Value Chart
FRA:PPY vs COLB, BOKF, CBSH: Peter Lynch Fair Value Comparison
For the Banks - Regional subindustry, Prosperity Bancshares's Price-to-Peter-Lynch-Fair-Value, along with its competitors' market caps and Price-to-Peter-Lynch-Fair-Value 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 Price-to-Peter-Lynch-Fair-Value vs Banks Industry
For the Banks industry and Financial Services sector, Prosperity Bancshares's Price-to-Peter-Lynch-Fair-Value distribution charts can be found below:
* The bar in red indicates where Prosperity Bancshares's Price-to-Peter-Lynch-Fair-Value falls into.
Prosperity Bancshares's EPS without NRI for the trailing twelve months (TTM) uses the latest annual data, which was €4.88.
* Note that for companies that do not have enough quarterly data to calculate the 5-Year TTM EBITDA Growth Rate, we use the annual data for the calculation.
* 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.
** Please be aware that the 5-Year TTM Book Value Growth Rate is calculated based on TTM data over the last 5 years. For quarterly reported companies, the TTM data is the latest quarter data. For companies that report semi-annually, annually, or do not have enough quarterly data, GuruFocus uses the annual data as the TTM data.
If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.
If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.
Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.
What does a Peter Lynch Fair Value of €26.01 mean?
Prosperity Bancshares (FRA:PPY) has a Peter Lynch Fair Value of €26.01 as of Jul. 30, 2026. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Prosperity Bancshares and its competitors. This is 1157% above median its historical median of 2.07. Over the past decade, Prosperity Bancshares' Peter Lynch Fair Value has ranged from 1.35 to 2.77. According to the industry distribution chart, Prosperity Bancshares ranks #999999 out of 874 companies in the Banks industry.
Is Prosperity Bancshares' Peter Lynch Fair Value too high?
Prosperity Bancshares' current Peter Lynch Fair Value of €26.01 is 1157% above median its 10-year median of 2.07. Over the past 10 years, this metric has ranged from a low of 1.35 to a high of 2.77. Based on the distribution chart, Prosperity Bancshares ranks #999999 out of 874 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Prosperity Bancshares has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Prosperity Bancshares' Peter Lynch Fair Value compare to COLB and BOKF?
According to the Banks industry distribution chart, Prosperity Bancshares ranks #999999 out of 874 companies for Peter Lynch Fair Value. This places Prosperity Bancshares in the lower half of its industry. The industry median Peter Lynch Fair Value is 1.12. Historically, Prosperity Bancshares' own Peter Lynch Fair Value has ranged from 1.35 to 2.77 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Peter Lynch Fair Value for a Banks company?
The median Peter Lynch Fair Value among Banks companies is 1.12, based on 874 companies in the industry. Companies in the top quartile (top 25%) have a Peter Lynch Fair Value significantly above this median, while those in the bottom quartile fall well below. However, Peter Lynch Fair Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Peter Lynch Fair Value mean?
A high Peter Lynch Fair Value can signal that a stock is expensive relative to its fundamentals. Peter Lynch Fair Value is the stock value based on a company's current earnings and five-year earnings growth, assuming a PEG of one. View historical data on Prosperity Bancshares and its competitors. For the Banks industry, the median Peter Lynch Fair Value is 1.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prosperity Bancshares's current Peter Lynch Fair Value is €26.01, which is 1157% above median its own 10-year median of 2.07. 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?
Prosperity Bancshares (FRA:PPY) has a current Peter Lynch Fair Value of €26.01. The stock's GF Value™ is €70.71, compared to a current price of €64.00 — trading 9.5% below its estimated fair value. The current Peter Lynch Fair Value is €26.01, which is 1157% above median its 10-year median of 2.07. Prosperity Bancshares' overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Peter Lynch Fair Value calculated?
Peter Lynch Fair Value is calculated from a company's financial statements. For Prosperity Bancshares (FRA:PPY), the current Peter Lynch Fair Value is €26.01 as of Jul. 30, 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 (FRA:PPY) Overvalued in 2026?
Based on GuruFocus' analysis, Prosperity Bancshares stock appears to be undervalued.
The current stock price of €64.00 is trading 9.5% below its estimated GF Value™ of €70.71.
Key valuation signals for FRA:PPY:
Peter Lynch Fair Value: €26.01 (1157% above median its 10-year median of 2.07)
GF Value™: €70.71 vs. price of €64.00 (9.5% below fair value)
No single metric tells the full story. See the FRA:PPY 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.
77GF Score
Get the complete analysis for FRA:PPY
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