First quarter earnings as a fresh reference point
Stock Yards Bancorp (SYBT) reported first quarter 2026 results that give you an updated snapshot of profitability, with higher net interest income and net income compared with the same period a year earlier.
See our latest analysis for Stock Yards Bancorp.
The recent first quarter earnings announcement has arrived after a period of firm share price momentum, with a 1 month share price return of 9.11% and a year to date share price return of 10.94%. The 3 year total shareholder return of 74.40% contrasts with a much flatter 1 year total shareholder return of 0.43%, suggesting that long term holders have seen stronger rewards than more recent investors.
If this kind of steady banking story appeals to you, it may be a good moment to broaden your view and check out 18 top founder-led companies
With earnings per share at US$1.24 for the quarter, a recent share price of US$72.33 and a sizeable intrinsic value discount flagged by some models, you have to ask: is there real upside here, or is the market already baking in future growth?
Preferred P/E of 14.9x: Is it justified?
On the surface, Stock Yards Bancorp screens as expensive, with a P/E of 14.9x compared with a 13x peer average and an 11.4x US banks average, even as the SWS DCF model flags a sizeable intrinsic value discount from a fair value of $116.56 to the current $72.33 share price.
The P/E ratio compares the share price with earnings per share and is a common way to see how much investors are paying for each dollar of profit in the banking sector. For SYBT, a 14.9x P/E sits above both its peer group and the broader US banks industry. This suggests the market is currently willing to pay a premium tag for its earnings stream.
That premium sits against several supporting data points. Earnings have grown 15.3% per year over the past 5 years, with growth of 17.7% over the past year, and net profit margins of 35.9% compared with 34.5% a year earlier. At the same time, the estimated fair P/E of 12.3x sits clearly below the current 14.9x. This points to a level the market could feasibly move toward if expectations around earnings and growth normalise.
Compared with the US banks industry average P/E of 11.4x, SYBT’s 14.9x multiple stands out as meaningfully higher, and above the 13x peer average as well. This reinforces the picture of a stock that is priced at a premium against sector benchmarks even though SWS DCF work suggests it is trading 37.9% below an intrinsic value estimate of $116.56.
Explore the SWS fair ratio for Stock Yards Bancorp
Result: Preferred multiple of Price-to-Earnings of 14.9x (OVERVALUED)
However, that premium P/E can be vulnerable if revenue or net income growth, currently running at about 11% annually, slows, or if valuation models prove too optimistic.
Find out about the key risks to this Stock Yards Bancorp narrative.
Another view: DCF points in the opposite direction
While the 14.9x P/E suggests a richer price tag than peers at 13x and the US banks average at 11.4x, the SWS DCF model presents a different picture. It shows an estimated fair value of US$116.56 compared with the current US$72.33. That indicates a 37.9% discount, so which signal do you trust more?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Stock Yards Bancorp for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
With the signals in this article pointing in different directions, it is worth checking the numbers yourself and deciding quickly where you stand, then reviewing the company’s 4 key rewards.
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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.
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