Stock Yards Bancorp (SYBT) Earnings Improved, Is The Stock Still Cheap?

Stock Yards Bancorp earnings put recent moves in context

Stock Yards Bancorp (SYBT) has drawn fresh attention after reporting second quarter and first half 2026 results, with both net interest income and net income higher than the same periods a year earlier.

For the second quarter, net interest income was US$87.83 million compared with US$73.47 million a year ago, while net income reached US$40.06 million versus US$34.02 million. Basic earnings per share from continuing operations were US$1.32, with diluted earnings per share at US$1.31.

See our latest analysis for Stock Yards Bancorp.

Against that earnings backdrop, Stock Yards Bancorp has seen momentum build, with an 18.42% 90 day share price return and a 30.52% year to date share price return, alongside a 5 year total shareholder return of 87.56%.

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After a strong run and solid recent results, the question for Stock Yards Bancorp now shifts to valuation. Does the current price still leave enough upside potential to justify the risks you would be taking from here?

Price-to-Earnings of 17.7x: Is it justified?

On Simply Wall St metrics, Stock Yards Bancorp currently trades on a P/E of 17.7x, which sits well above both its US Banks industry group and its selected peer set.

The P/E ratio compares the company share price with its earnings per share. For a bank like Stock Yards Bancorp, it reflects what investors are currently willing to pay for each dollar of earnings and often embeds expectations for future profit growth, return on equity and balance sheet resilience.

Here, the 17.7x P/E is higher than the US Banks industry average P/E of 11.9x and also above the peer average P/E of 11.5x. It also sits above the estimated fair P/E of 13.4x, which is a level the market could potentially move toward if enthusiasm cools or earnings do not keep pace with current expectations. These comparisons indicate that investors are paying a premium relative to sector norms as well as to this fair ratio benchmark.

Explore the SWS fair ratio for Stock Yards Bancorp

Result: Price-to-Earnings of 17.7x (OVERVALUED)

However, Stock Yards Bancorp trades well above sector P/E levels, and any setback in revenue or net income growth could quickly challenge that premium story.

Find out about the key risks to this Stock Yards Bancorp narrative.

Another view on Stock Yards Bancorp valuation

While the 17.7x P/E suggests Stock Yards Bancorp is priced ahead of peers, the SWS DCF model points in the other direction. At a share price of $85.10, it sits about 28.8% below an estimated future cash flow value of $119.52, which implies a very different risk reward picture.

Those two signals do not line up neatly. One flags a rich earnings multiple, and the other points to a discount on long term cash flows. Which lens do you want to rely on when you decide what margin of safety feels acceptable from here? 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 55 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

If this mix of signals around Stock Yards Bancorp leaves you unsure, take a closer look at the underlying data now and form your own view. You can also weigh up what the market is optimistic about by reviewing the 4 key rewards

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• Target quality with upside by checking out 55 high quality undervalued stocks, so you are not paying more than you intend for earnings strength.
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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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