Bank of Queensland Ltd (ASX: BOQ) shares hit new 52-week highs last week and finished the session on Thursday at $6.46 apiece.

When you compare that figure to some of the other banking majors, many would need a second glance.

"Is this a joke?" you might ask, seeing that names such as Commonwealth Bank of Australia (ASX: CBA) and Macquarie Group Ltd (ASX: MQG) trade in multiples of this – at around $144 and $231 apiece, respectively.

The table below shows the share prices of each banking major and the Bank of Queensland.

This regional bank has lagged the pack this year, but are its shares worth a closer look, or are they simply not up to scratch?

Let's delve into the details and see what the data and analysts say.

Bank of Queensland shares: Cheap or fairly priced?

When discussing share valuation, it's not a discussion of one price versus another. Typically, to compare valuations between companies, we compare prices relative to a business' earnings or assets.

These ratios bring things into a common size to make accurate comparisons.

Bank of Queensland trades on a price-to-earnings (P/E) ratio that sits at 16.50 times, slightly lower than the market's average of 20 times at the time of writing.

In the table below, you can see the bank's relative P/E compared to other banking majors.

Among the major banks, only ANZ Group Holdings Ltd (ASX: ANZ) has a cheaper P/E ratio of 13.8 times at the time of writing.

So even though it has the lowest share price, it isn't the 'cheapest' when benchmarked against earnings and valuations of other banks.

But in terms of price performance over the last 12 months – Bank of Queensland shares have lagged the bunch. You can see this in the chart below.

This largely comes down to the bank's lower established earnings compared to peers. For instance, even though ANZ is valued at 13.8 times earnings, it earned $2.25 per share in the last twelve months.

Whereas Bank of Queensland is valued at 15.5 times but earned 39.4 cents per share in the same period.

And besides, P/E ratios often give insights for the market's expectations on a company. A higher multiple can be due to higher expectations.

This makes for reasonable comparisons between price (what you pay) and value (what you get moving forward). This is important. We don't get paid for what's already happened.

Consensus estimates from CommSec suggest BOQ could achieve earnings per share (EPS) of 46 cents this year.

If the market continues to value BOQ shares at a P/E of 16, the stock could be worth around $7.36 —indicating a potential upside of 14% from the current price.

Even if the multiple contracts to 15 times, BOQ shares could still hit $6.90, offering a 7% upside.

What's the verdict?

Analysts aren't convinced. The consensus rating on Bank of Queensland shares is sell, per CommSec.

Goldman Sachs is one that is bearish and values the stock at $5.54 apiece.

It also forecasts a wind-back in dividends from the bank to 30 cents per share in FY25.

The bank is undergoing a significant transformation. By March 2025, it plans to convert its entire owner-managed branch network into corporate branches and cut 400 full-time jobs to streamline operations.

Goldman is cautious about this move. The firm is weary about the "high degree of execution risk" in the required investment and also cautious about the bank's revised return on equity (ROE) targets, down from 9.25% to 8%.

Foolish takeaway

Bank of Queensland shares may not be the joke they appear to be at first glance.

The potential upside is based on earnings growth and the prospective dividends.