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If you are wondering whether Simmons First National is good value at around US$19.24, the key is understanding what that price really implies about the business.
The stock is up 2.2% year to date, although it has seen a 0.3% decline over the past week, a 0.9% decline over the past month and an 11.6% decline over the last year. These movements may change how investors think about its risk and return profile.
Recent news around Simmons First National has focused on its position within the regional banking sector and how investors are weighing bank specific fundamentals against broader financial sector sentiment. This context helps explain why the share price has moved differently across short and longer time frames.
Our valuation checks give Simmons First National a 4 out of 6 valuation score, which suggests some aspects of the stock may look attractive on price while others are more mixed. Next, we will look at the usual valuation tools before finishing with a more complete way to think about value overall.
Find out why Simmons First National’s -11.6% return over the last year is lagging behind its peers.
The Excess Returns model looks at how much profit Simmons First National can generate over and above the return that equity investors typically require, and then capitalizes those surplus returns into an intrinsic value per share.
For Simmons First National, the inputs are quite specific. Book Value is US$23.18 per share, with a Stable EPS of US$2.04 per share, based on weighted future Return on Equity estimates from 6 analysts. The model applies a Cost of Equity of US$1.76 per share, which leaves an Excess Return of US$0.28 per share. That excess is built on an Average Return on Equity of 8.06% and a Stable Book Value assumption of US$25.34 per share, again sourced from weighted future Book Value estimates from 6 analysts.
Putting these together, the Excess Returns model arrives at an estimated intrinsic value of about US$32.89 per share. Compared with the current share price around US$19.24, this suggests the stock is about 41.5% undervalued on this framework.
Result: UNDERVALUED
Our Excess Returns analysis suggests Simmons First National is undervalued by 41.5%. Track this in your watchlist or portfolio, or discover 863 more undervalued stocks based on cash flows.
SFNC Discounted Cash Flow as at Jan 2026
Story Continues
For banks, P/B is often the most useful quick check because the balance sheet and book value of equity sit at the core of how these businesses are run and regulated. You are essentially asking how many dollars you are paying for each dollar of net assets on the balance sheet.
What counts as a “normal” P/B can shift with growth expectations and perceived risk. Faster growing or lower risk banks often trade at a higher P/B, while slower growth or higher risk names can sit below book value. That context matters when you compare any single bank to its peers.
Simmons First National is currently trading on a P/B of about 0.83x. This is below both the Banks industry average of roughly 1.08x and the peer group average of about 1.20x. Simply Wall St also uses a proprietary “Fair Ratio” for P/B, which is the multiple it would expect for the company given factors like earnings growth, profit margins, its industry, market cap and risk profile. Because this Fair Ratio is tailored to Simmons First National rather than being a broad sector average, it can be a more targeted way to judge whether the current 0.83x looks stretched or conservative.
Result: UNDERVALUED
NasdaqGS:SFNC P/B Ratio as at Jan 2026
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Earlier we mentioned that there is an even better way to think about valuation. On Simply Wall St you can use Narratives, which are simple stories you create around Simmons First National that link your view of its future revenue, earnings and margins to a financial forecast, a fair value, and a clear comparison of Fair Value vs Price. This comparison updates automatically when new news or earnings arrive. One investor might build a more optimistic Simmons view around the US$22.80 fair value, supported by assumptions of faster revenue growth and higher margins. Another might plug in more cautious assumptions and arrive at a lower fair value. You can see both of these side by side on the Community page used by millions of investors, then decide which story you agree with.
Do you think there’s more to the story for Simmons First National? Head over to our Community to see what others are saying!
NasdaqGS:SFNC 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SFNC.
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