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    Peoples Bancorp (PEBO) Valuation Check After Earnings Growth And Margin Expansion

    Simply Wall St·02/01/2026 19:18:26
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    Peoples Bancorp (PEBO) has drawn fresh attention after reporting fourth quarter 2025 results, including higher net interest income, an 86.4% rise in net earnings, and an affirmed quarterly cash dividend of $0.41 per share.

    See our latest analysis for Peoples Bancorp.

    The recent earnings beat and dividend affirmation have come alongside a 90 day share price return of 12.76% and a 1 year total shareholder return of 5.25%. The 3 year total shareholder return of 25.08% points to steadier gains over time as recent results draw fresh attention to the bank's progress.

    If you are looking beyond regional banks after these results, this could be a good moment to scan solid balance sheet and fundamentals stocks screener (None results) and see which other names stand out.

    With PEBO trading at US$32.52 against an analyst price target of US$34.40 and an implied intrinsic discount of about 44%, the key question is whether this recent earnings strength is still underappreciated or if the market is already baking in future growth.

    Most Popular Narrative: 4.8% Undervalued

    Peoples Bancorp's most followed narrative places fair value at about $34.17, slightly above the last close of $32.52, which raises some clear questions about what is built into those assumptions.

    Proactive cost containment and technology investments, including the scaling of digital banking and automation, are already reflected in lower deposit and borrowing costs, more stable noninterest expense, and an improving efficiency ratio; further digital adoption is expected to reduce costs and support net margin expansion.

    Read the complete narrative.

    Curious how lower funding costs, higher margins and a different earnings mix could all feed into that valuation gap? The full narrative lays out the earnings path, margin shifts and capital assumptions that sit behind that fair value call.

    Result: Fair Value of $34.17 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this narrative could be knocked off course if credit issues in the small ticket leasing book linger, or if higher cost retail CDs keep funding pressures elevated.

    Find out about the key risks to this Peoples Bancorp narrative.

    Build Your Own Peoples Bancorp Narrative

    If you see the numbers differently, or prefer to test your own assumptions against the same data, you can build a personalised view in minutes with Do it your way.

    A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Peoples Bancorp.

    Looking for more investment ideas?

    If you want to stay ahead of the crowd, do not stop at one bank. Broaden your watchlist now and give yourself more options to act on.

    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.