Prosperity Bancshares, Inc.

Valuation Analysis

About the Company

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts; and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, and agricultural and non-real estate agricultural loans; construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion

Prosperity Bancshares, Inc. Stock at a Glance

Prosperity Bancshares, Inc. (PB) is currently trading at $72.67 with a market capitalization of $7.3B. The trailing P/E ratio stands at 13.19x, with a forward P/E of 10.07x. The 52-week range spans from $61.07 to $77.20; the current price is 5.9% below the yearly high. Year-over-year revenue growth stands at +19.9%. The net profit margin stands at 40.35%.

💰 Dividend

Prosperity Bancshares, Inc. pays an annual dividend of $2.38 per share, representing a yield of 3.28%. The payout ratio stands at 42.83%.

📊 Analyst Rating

13 analysts rate Prosperity Bancshares, Inc. (PB) on consensus: None. The average price target is $77.92, implying +7.23% from the current price. Analyst price targets range from $68.00 to $85.00.

Prosperity Bancshares, Inc.: The Investment Case in Detail

Prosperity Bancshares, Inc. (PB) operates in the Financial Services — specifically Banks - Regional — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 19.9% pace year-over-year, suggesting the business model continues to find new customers and pricing power. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

Valuation in Context

At a PEG of 4.18, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here.

What to Watch Next

• The forward P/E of 10.07x is meaningfully below the trailing 13.19x — analysts expect earnings to step up; the next earnings release is the test.
• The dividend yield near 3.28% combined with a payout ratio of 42.83% leaves room for further hikes — a track record of consecutive raises is a strong income signal.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (6.48%).

Trading Data

💵 Dividend Info

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