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If you’re wondering if Pinnacle Financial Partners’ current share price really lines up with fundamental value, you’re not alone.
Shares last closed at $95.09, down 2% over the past week and flat returns over the past month and year, while 3- and 5-year returns of 19.7% and 36.6% suggest a mixed ride for longer-term holders.
Recent news coverage of Pinnacle Financial Partners has focused on its positioning in the US regional banking space and how investors are thinking about banking stocks in general. These headlines help explain why sentiment around share prices has changed at different times over the past few years.
Pinnacle Financial Partners currently has a review score of 4/6, which means it is underrated on most of the checks we use. Next, we’ll compare several common valuation approaches, then finish with a way to look at valuation that can give you a deeper sense of whether stocks really fit your portfolio.
Find out why Pinnacle Financial Partners’ -23.0% return over the past year lags its peers.
The Excess Returns model looks at how much profit a company can make above the return required by shareholders, then capitalizes those “excess” returns into an intrinsic value per share.
For Pinnacle Financial Partners, the starting point is its book value of $88.65 per share and a flat EPS estimate of $11.59 per share, based on weighted forward estimates of return on equity from 10 analysts. The model uses a cost of equity of $7.32 per share, which implies an additional return of $4.27 per share. In other words, the earnings attributed to shareholders are greater than the earnings required to compensate for their risk.
The average return on equity is 11.02%, while the stable book value is projected at $105.24 per share, based on the estimates of 13 analysts. Combining these inputs, the Excess Returns model arrives at an estimated intrinsic value of approximately $220.83 per share.
Compared to the recent share price of $95.09, this suggests that the stock screens is significantly undervalued, with an intrinsic discount of approximately 56.9%.
Result: UNDERRATED
Our Excess Return analysis suggests that Pinnacle Financial Partners is 56.9% undervalued. Track this in your watchlist or portfolio, or discover 874 more undervalued stocks based on cash flows.
PNFP’s discounted cash flow in February 2026
Go to the Valuation section of our Company Report for more details on how we arrive at this fair value for Pinnacle Financial Partners.
P/E is a common way to look at profitable companies because it directly relates what you pay to what the business is earning today. It allows you to compare how the market is pricing each dollar of earnings from different banks and against other sectors.
What counts as a “normal” or “fair” P/E depends on how fast earnings are expected to grow and how risky those earnings are. Higher expected growth or perceived resilience can support a higher multiple, while more uncertainty or weaker profitability tends to lower it.
Pinnacle Financial Partners currently trades at a P/E of 22.84x. This is higher than the bank industry average of 11.84x and also above the peer average of 11.99x. Simply put, Wall St’s equity ratio is 24.02x. This equity ratio is a proprietary estimate of what the P/E “should” be after taking into account factors such as earnings growth, risk profile, profit margins, industry and market capitalization, so it can be more tailored than a simple comparison to peers or general industry averages.
Given that the current P/E of 22.84x is below the fair ratio of 24.02x, the stock is described as slightly undervalued on this measure.
Result: UNDERRATED
NYSE:PNFP February 2026 P/E Ratio
P/E ratios tell a story, but what if the real opportunity lies elsewhere? Discover 1,422 companies where insiders are betting big on explosive growth.
We mentioned earlier that there’s an even better way to understand valuation, so let us introduce you to Narratives, which are simply your own story about a company tied directly to your assumptions about future revenues, earnings, margins and fair value.
On Simply Wall St, a narrative connects three parts: what you think is happening with the business, the forecast you connect about future performance, and the fair value you subtract from those numbers so you can compare it to the current stock price and decide whether the stock looks attractive to you or not.
These narratives are on the Simply Wall St community page where millions of investors share their opinions. They update automatically when new information is added, such as news or earnings, so your fair value opinion of Pinnacle Financial Partners doesn’t stay frozen in time.
For example, a Pinnacle Financial Partners Narrative on the Community page might assume a relatively optimistic fair value and stronger future profitability. Another might take a more conservative view with a lower fair value and more conservative estimates. This shows how different investors can look at the same numbers and come to different conclusions about when price and value align for their own decision.
Do you think there is more to the story for Pinnacle Financial Partners? Go to our community to see what others are saying!
NYSE:PNFP 1 Year Stock Price Chart
This article from Simply Wall St is general in nature. We only provide commentary based on historical data and analyst forecasts using an unbiased methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. We aim to provide you with focused long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality materials. Simply Wall St has no position in any of the stocks mentioned.
The companies discussed in this article include PNFP.
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