Latest Ratios: P/E Ratio 12.6x · EV/EBITDA 9.0x · ROE 7.2%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.3B | $6.5B | $7.2B | $6.3B | $6.7B | $6.7B | $6.5B | $5.3B | $4.3B | $4.9B | $5.0B |
| Enterprise Value | $7.7B | $6.9B | $8.6B | $9.9B | $10.4B | $4.6B | $5.5B | $6.5B | $5.3B | $5.3B | $5.9B |
| P/E Ratio → | 12.59 | 12.08 | 14.92 | 15.02 | 12.68 | 12.91 | 12.21 | 15.90 | 13.51 | 17.88 | 18.22 |
| P/S Ratio | 4.18 | 3.76 | 4.11 | 4.04 | 5.54 | 5.82 | 5.23 | 5.66 | 5.27 | 6.27 | 6.44 |
| P/B Ratio | 0.89 | 0.86 | 0.96 | 0.89 | 0.99 | 1.04 | 1.05 | 0.89 | 1.07 | 1.27 | 1.37 |
| P/FCF | 14.05 | 12.64 | 15.85 | 10.28 | 14.35 | 9.91 | 11.52 | 13.75 | 14.26 | 12.83 | 15.19 |
| P/OCF | 13.22 | 11.89 | 15.14 | 9.73 | 13.14 | 9.64 | 11.08 | 13.12 | 13.59 | 12.46 | 14.96 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.99 | 4.94 | 6.34 | 8.62 | 3.99 | 4.45 | 6.98 | 6.37 | 6.83 | 7.56 |
| EV / EBITDA | 9.03 | 8.17 | 13.30 | 17.45 | 14.92 | 6.67 | 8.13 | 14.83 | 12.47 | 12.48 | 13.64 |
| EV / EBIT | 11.05 | 10.00 | 14.05 | 18.46 | 15.55 | 6.97 | 8.53 | 15.55 | 13.04 | 13.07 | 14.38 |
| EV / FCF | — | 13.42 | 19.06 | 16.12 | 22.33 | 6.81 | 9.82 | 16.96 | 17.23 | 13.98 | 17.84 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 71.9% | 71.9% | 65.2% | 67.4% | 92.5% | 95.3% | 89.2% | 84.8% | 86.2% | 90.4% | 91.4% |
| Operating Margin | 39.9% | 39.9% | 35.2% | 34.3% | 55.4% | 57.3% | 52.2% | 44.9% | 48.8% | 52.3% | 52.6% |
| Net Profit Margin | 31.2% | 31.2% | 27.5% | 26.9% | 43.6% | 45.1% | 42.8% | 35.6% | 39.0% | 35.0% | 35.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.2% | 7.2% | 6.6% | 6.1% | 8.0% | 8.3% | 8.7% | 6.6% | 8.2% | 7.3% | 7.7% |
| ROA | 1.4% | 1.4% | 1.2% | 1.1% | 1.4% | 1.4% | 1.6% | 1.2% | 1.4% | 1.2% | 1.2% |
| ROIC | 5.0% | 5.0% | 4.2% | 3.7% | 5.6% | 7.4% | 6.8% | 4.8% | 6.0% | 6.3% | 6.6% |
| ROCE | 6.7% | 6.7% | 5.6% | 6.0% | 9.9% | 10.2% | 10.2% | 8.0% | 10.0% | 10.6% | 11.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.46 | 0.57 | 0.62 | 0.07 | 0.06 | 0.30 | 0.32 | 0.22 | 0.36 |
| Debt / EBITDA | 2.53 | 2.53 | 5.29 | 7.14 | 5.94 | 0.65 | 0.58 | 4.11 | 3.12 | 1.95 | 3.04 |
| Net Debt / Equity | — | 0.05 | 0.19 | 0.51 | 0.55 | -0.33 | -0.16 | 0.21 | 0.22 | 0.11 | 0.24 |
| Net Debt / EBITDA | 0.48 | 0.48 | 2.24 | 6.32 | 5.33 | -3.05 | -1.41 | 2.81 | 2.15 | 1.03 | 2.03 |
| Debt / FCF | — | 0.78 | 3.21 | 5.84 | 7.98 | -3.11 | -1.70 | 3.21 | 2.97 | 1.15 | 2.66 |
| Interest Coverage | 1.42 | 1.42 | 1.03 | 1.09 | 7.43 | 12.30 | 5.70 | 3.06 | 4.13 | 6.71 | 9.47 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.43 | 0.43 | 0.46 | 0.04 | 0.03 | 0.10 | 0.07 | 0.04 | 0.03 | 0.04 | 0.04 |
| Quick Ratio | 0.43 | 0.43 | 0.46 | 0.04 | 0.03 | 0.10 | 0.07 | 0.04 | 0.03 | 0.04 | 0.04 |
| Cash Ratio | 0.06 | 0.06 | 0.07 | 0.02 | 0.01 | 0.08 | 0.05 | 0.02 | 0.02 | 0.02 | 0.02 |
| Asset Turnover | — | 0.05 | 0.04 | 0.04 | 0.03 | 0.03 | 0.04 | 0.03 | 0.04 | 0.03 | 0.03 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.3% | 3.4% | 3.0% | 3.3% | 2.9% | 2.8% | 2.7% | 2.4% | 2.4% | 2.0% | 1.7% |
| Payout Ratio | 40.8% | 40.8% | 44.7% | 49.1% | 36.8% | 35.5% | 32.9% | 38.8% | 32.3% | 35.2% | 31.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.9% | 8.3% | 6.7% | 6.7% | 7.9% | 7.7% | 8.2% | 6.3% | 7.4% | 5.6% | 5.5% |
| FCF Yield | 7.1% | 7.9% | 6.3% | 9.7% | 7.0% | 10.1% | 8.7% | 7.3% | 7.0% | 7.8% | 6.6% |
| Buyback Yield | 2.2% | 2.4% | 1.0% | 1.1% | 1.0% | 0.8% | 1.8% | 1.8% | 0.0% | 0.0% | 1.0% |
| Total Shareholder Yield | 5.4% | 5.8% | 4.0% | 4.4% | 3.9% | 3.5% | 4.5% | 4.2% | 2.4% | 2.0% | 2.7% |
| Shares Outstanding | — | $95M | $95M | $93M | $92M | $93M | $93M | $74M | $70M | $69M | $70M |
Texas Real Estate Concentration
According to recent market data, PB trades at a P/B of 0.92, which suggests that investors are pricing the bank at a discount to book value despite its historically superior efficiency ratio compared to regional peers like First Financial Bank or Cadence Bank.
The current valuation multiple appears to reflect market skepticism regarding the sustainability of organic growth in the Texas corridor. Investors should monitor whether the bank's disciplined cost control can continue to drive shareholder value if the acquisition-led expansion model faces further regulatory or competitive headwinds.
As reported in financial statements, Prosperity Bancshares maintains a highly disciplined efficiency ratio, consistently hovering near 30%, which serves as the primary engine for its profitability despite the recent stagnation in net interest margin observed across the last ten quarters of reported data.
The bank's ability to maintain a net margin of 31.23% suggests that management successfully extracts value from its hub-and-spoke acquisition model. However, the reliance on cost-cutting rather than asset-sensitive yield expansion may limit upside potential if the current interest rate environment persists or funding costs continue to rise.
Based on reported figures, the bank maintains an equity-to-assets ratio of approximately 0.19, indicating a fortress-like balance sheet that provides a significant buffer against credit shocks but may simultaneously signal an underutilization of capital that could be deployed for more aggressive organic loan growth.
This conservative stance appears to prioritize stability over leverage-driven returns, which is consistent with the bank's historical risk-averse profile. While this provides safety, it warrants further investigation into whether management is missing opportunities to enhance ROE through more efficient capital allocation in the current market cycle.
As indicated by the provided financial data, the P/E ratio of 13.00 is a commonly misapplied metric for Prosperity Bancshares because it fails to account for the bank's consistent reporting of zero provision expenses, which may artificially inflate earnings and mask underlying credit quality deterioration.
Investors should instead focus on the tangible book value per share and the trend in non-performing assets to gauge true franchise health. Relying on P/E in this context risks ignoring the potential for future earnings volatility should the bank be forced to normalize its provisioning levels in response to regional real estate pressures.
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying PB stock.
Prosperity Bancshares, Inc.'s current P/E ratio is 12.6x. The historical average is 14.9x. This places it at the 14th percentile of its historical range.
Prosperity Bancshares, Inc.'s current EV/EBITDA is 9.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.2x.
Prosperity Bancshares, Inc.'s return on equity (ROE) is 7.2%. The historical average is 9.8%.
Based on historical data, Prosperity Bancshares, Inc. is trading at a P/E of 12.6x. This is at the 14th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Prosperity Bancshares, Inc.'s current dividend yield is 3.25% with a payout ratio of 40.8%.
Prosperity Bancshares, Inc. has 71.9% gross margin and 39.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Prosperity Bancshares, Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.