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Prosperity Bancshares (Prosperity Bancshares) Peter Lynch Fair Value : $24.77 (As of May. 04, 2024)


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What is Prosperity Bancshares Peter Lynch Fair Value?

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 5.36. Prosperity Bancshares's EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2023 was $4.62. Therefore, the Peter Lynch Fair Value for today is $24.77.

As of today (2024-05-04), Prosperity Bancshares's share price is $63.07. Prosperity Bancshares's Peter Lynch fair value is $24.77. Therefore, Prosperity Bancshares's Price to Peter Lynch Fair Value Ratio for today is 2.55.


The historical rank and industry rank for Prosperity Bancshares's Peter Lynch Fair Value or its related term are showing as below:

PB' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 1.12   Med: 2.09   Max: 2.62
Current: 2.44


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Prosperity Bancshares was 2.62. The lowest was 1.12. And the median was 2.09.


PB's Price-to-Peter-Lynch-Fair-Value is ranked worse than
91.35% of 694 companies
in the Banks industry
Industry Median: 0.88 vs PB: 2.44

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


Prosperity Bancshares Peter Lynch Fair Value Historical Data

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.

* Premium members only.

Prosperity Bancshares Peter Lynch Fair Value Chart

Prosperity Bancshares Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Peter Lynch Fair Value
Get a 7-Day Free Trial Premium Member Only Premium Member Only 28.39 34.20 34.40 35.10 25.89

Prosperity Bancshares Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Peter Lynch Fair Value Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.13 32.13 29.54 25.89 -

Competitive Comparison of Prosperity Bancshares's Peter Lynch Fair Value

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's Price-to-Peter-Lynch-Fair-Value Distribution in the 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 Peter Lynch Fair Value Calculation

Prosperity Bancshares's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year TTM Book Value Growth Rate***EPS without NRI (TTM)
=1* 5.36 *4.621
=24.77

Prosperity Bancshares's EPS without NRI for the trailing twelve months (TTM) uses the latest annual data, which was $4.62.

* 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.


Prosperity Bancshares  (NYSE:PB) 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 5.36 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
=63.07/24.77
=2.55

* 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

Thank you for viewing the detailed overview of Prosperity Bancshares's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Prosperity Bancshares (Prosperity Bancshares) Business Description

Traded in Other Exchanges
Address
Prosperity Bank Plaza, 4295 San Felipe, Houston, TX, USA, 77027
Prosperity Bancshares Inc follows a community bank model and provides multiple services to individuals and small to midsize businesses. It operates more than 270 branches in Texas, most of them around the Houston, Dallas-Fort Worth, Corpus Christi, and Austin metropolitan areas.
Executives
L. Jack Lord director 4295 SAN FELIPE, HOUSTON TX 77027
Timanus H E Jr director, officer: Executive Vice President
Asylbek Osmonov officer: Interim CFO 4295 SAN FELIPE, HOUSTON X1 77027
Robert H Steelhammer director 2100 W LOOP S STE 1400, HOUSTON TX 77027
Laura Murillo director 4295 SAN FELIPE, HOUSTON TX 77027
Ileana M Blanco director 4295 SAN FELIPE, HOUSTON TX 77027
George A. Fisk director LEGACYTEXAS FINANCIAL GROUP, INC., 5851 LEGACY CIRCLE, PLANO TX 75024
Robert J. Dowdell officer: Executive Vice President 4295 SAN FELIPE, HOUSTON TX 77027
David Zalman director, officer: President and Chief Executive 316 E CALHOUN, EL CAMPO TX 77437
James A Bouligny director P O BOX 1567, EL CAMPO TX 77437
Charlotte M Rasche officer: Executive Vice President 80 SUGAR CREEK CENTER BOULEVARD, SUGAR LAND TX 77478
Edward Z Safady officer: President 80 SUGAR CREEK CENTER BLVD, SUGAR LAND TX 77478
Kevin J Hanigan director, officer: President & COO LEGACYTEXAS FINANCIAL GROUP, INC., 5851 LEGACY CIRCLE, PLANO TX 75024
Bruce W Hunt director
J. Mays Davenport officer: EVP/Director of Corp Strategy C/O LEGACYTEXAS FINANCIAL GROUP, INC., 5851 LEGACY CIRCLE, PLANO TX 75024