Prosperity Bancshares, Inc. (PB) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-6.1%

$69.71

vs $74.24 price

Levered DCF

$76.03

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.2

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	12.08×	14.92×	15.02×	12.68×	12.91×	12.21×	15.9×	13.51×
P/B	0.86×	0.96×	0.89×	0.99×	1.04×	1.05×	0.89×	1.07×
P/S	3.76×	4.11×	4.04×	5.54×	5.82×	5.23×	5.66×	5.27×
EV / EBITDA	9.53×	13.3×	17.45×	14.92×	6.67×	8.13×	14.83×	12.47×
Gross margin	71.9%	65.2%	67.4%	92.5%	95.3%	89.2%	84.8%	86.2%
Operating margin	39.9%	35.2%	34.3%	55.4%	57.3%	52.2%	44.9%	48.8%
Net margin	31.2%	27.5%	26.9%	43.6%	45.1%	42.8%	35.6%	39.0%
Current ratio	0.43×	0.46×	0.04×	0.03×	0.1×	0.07×	0.04×	0.03×
Debt / equity	0.28×	0.46×	0.57×	0.62×	0.07×	0.06×	0.3×	0.32×
Interest coverage	1.42×	1.03×	1.09×	7.43×	12.3×	5.7×	3.06×	4.13×
Dividend yield	3.4%	3.0%	3.3%	2.9%	2.8%	2.7%	2.4%	2.4%
Payout ratio	40.8%	44.7%	49.1%	36.8%	35.5%	32.9%	38.8%	32.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.1%	6.4%	5.9%	7.8%	8.1%	8.6%	5.6%	7.9%
Return on invested capital	5.5%	4.3%	3.7%	5.7%	7.4%	7.9%	4.2%	5.9%
Return on assets	1.4%	1.2%	1.1%	1.4%	1.4%	1.6%	1.0%	1.4%
Free cash flow yield	7.9%	6.3%	9.7%	7.0%	10.1%	8.7%	7.3%	7.0%
Earnings yield	8.3%	6.7%	6.7%	7.9%	7.8%	8.2%	6.3%	7.4%
Enterprise value	$6.9B	$8.6B	$9.9B	$10.4B	$4.6B	$5.5B	$6.5B	$5.3B
Net debt / EBITDA	0.55×	2.24×	6.32×	5.33×	-3.05×	-1.41×	2.81×	2.15×
Cash conversion cycle (days)	-2	-3	-2	9	12	15	9	12