Canadian Western Bank

TSX:CWB Stock Report

Market Cap: CA$5.6b

Canadian Western Bank Valuation

Is CWB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CWB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CWB (CA$57.64) is trading below our estimate of fair value (CA$65.27)

Significantly Below Fair Value: CWB is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CWB?

Other financial metrics that can be useful for relative valuation.

CWB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does CWB's PE Ratio compare to its peers?

The above table shows the PE ratio for CWB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.3x
EQB EQB
9.5x8.6%CA$4.1b
VBNK VersaBank
13.3x30.4%CA$582.9m
NA National Bank of Canada
12.9x0.1%CA$45.6b
TFSL TFS Financial
49.7x4.0%US$3.9b
CWB Canadian Western Bank
19.7x13.8%CA$5.6b

Price-To-Earnings vs Peers: CWB is good value based on its Price-To-Earnings Ratio (19.7x) compared to the peer average (21.3x).

Price to Earnings Ratio vs Industry

How does CWB's PE Ratio compare vs other companies in the North American Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.0%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.0%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: CWB is expensive based on its Price-To-Earnings Ratio (19.7x) compared to the North American Banks industry average (13x).

Price to Earnings Ratio vs Fair Ratio

What is CWB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CWB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.7x
Fair PE Ratio14.2x

Price-To-Earnings vs Fair Ratio: CWB is expensive based on its Price-To-Earnings Ratio (19.7x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CWB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$57.64
CA$55.04
-4.5%
6.1%CA$60.30CA$52.00n/a8
Nov ’25CA$56.89
CA$52.48
-7.8%
15.0%CA$60.30CA$32.00n/a9
Oct ’25CA$53.90
CA$52.14
-3.3%
14.6%CA$60.30CA$32.00n/a9
Sep ’25CA$51.47
CA$53.54
+4.0%
7.7%CA$60.30CA$46.00n/a8
Aug ’25CA$47.43
CA$51.60
+8.8%
4.9%CA$55.80CA$46.00n/a8
Jul ’25CA$43.38
CA$51.60
+18.9%
4.9%CA$55.80CA$46.00n/a8
Jun ’25CA$25.33
CA$32.80
+29.5%
8.9%CA$37.00CA$28.00n/a10
May ’25CA$27.00
CA$34.10
+26.3%
6.9%CA$37.00CA$29.00n/a10
Apr ’25CA$27.79
CA$34.10
+22.7%
6.9%CA$37.00CA$29.00n/a10
Mar ’25CA$28.46
CA$34.50
+21.2%
6.9%CA$37.00CA$29.00n/a10
Feb ’25CA$29.54
CA$34.60
+17.1%
5.7%CA$37.00CA$32.00n/a10
Jan ’25CA$30.87
CA$34.45
+11.6%
5.4%CA$37.00CA$32.00n/a11
Dec ’24CA$30.42
CA$32.55
+7.0%
5.5%CA$35.00CA$29.00n/a11
Nov ’24CA$27.60
CA$32.91
+19.2%
4.9%CA$35.00CA$29.00CA$56.8911
Oct ’24CA$28.14
CA$32.91
+16.9%
4.9%CA$35.00CA$29.00CA$53.9011
Sep ’24CA$29.30
CA$30.46
+4.0%
10.1%CA$35.00CA$26.00CA$51.4713
Aug ’24CA$26.18
CA$28.92
+10.5%
10.4%CA$35.00CA$25.00CA$47.4313
Jul ’24CA$24.72
CA$28.92
+17.0%
10.4%CA$35.00CA$25.00CA$43.3813
Jun ’24CA$24.76
CA$28.92
+16.8%
10.4%CA$35.00CA$25.00CA$25.3313
May ’24CA$24.35
CA$30.85
+26.7%
8.7%CA$35.00CA$28.00CA$27.0013
Apr ’24CA$24.76
CA$30.85
+24.6%
8.7%CA$35.00CA$28.00CA$27.7913
Mar ’24CA$27.83
CA$31.69
+13.9%
8.2%CA$36.00CA$28.00CA$28.4613
Feb ’24CA$28.15
CA$30.31
+7.7%
10.5%CA$36.00CA$26.00CA$29.5413
Jan ’24CA$24.06
CA$30.31
+26.0%
10.5%CA$36.00CA$26.00CA$30.8713
Dec ’23CA$25.42
CA$32.23
+26.8%
10.0%CA$37.00CA$27.00CA$30.4213
Nov ’23CA$23.62
CA$33.23
+40.7%
10.3%CA$38.00CA$27.00CA$27.6013

Analyst Forecast: Target price is lower than the current share price.

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