Webster Financial Corporation

DB:WED Stock Report

Market Cap: €10.1b

Webster Financial Valuation

Is WED 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 WED when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WED (€59) is trading below our estimate of fair value (€153.15)

Significantly Below Fair Value: WED is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As WED is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WED. This is calculated by dividing WED's market cap by their current earnings.
What is WED's PE Ratio?
PE Ratio14.1x
EarningsUS$751.84m
Market CapUS$10.63b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WED vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.3x
CBK Commerzbank
7.9x8.8%€16.9b
600926 Bank of Hangzhou
5.3x15.5%CN¥84.0b
WAL Western Alliance Bancorporation
14.4x22.7%US$10.3b
CFR Cullen/Frost Bankers
17.6x1.4%US$9.2b
WED Webster Financial
14.1x15.2%€10.6b

Price-To-Earnings vs Peers: WED is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the peer average (11.3x).

Price to Earnings Ratio vs Industry

How does WED's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WED 14.1xIndustry Avg. 7.2xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WED is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the European Banks industry average (7.3x).

Price to Earnings Ratio vs Fair Ratio

What is WED'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.

WED PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.1x
Fair PE Ratio12.6x

Price-To-Earnings vs Fair Ratio: WED is expensive based on its Price-To-Earnings Ratio (14.1x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).

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 WED forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€59.00
€59.12
+0.2%
5.8%€66.09€54.76n/a13
Nov ’25€47.00
€55.48
+18.0%
4.1%€58.26€49.93n/a13
Oct ’25€41.60
€49.81
+19.7%
5.3%€53.89€44.91n/a15
Sep ’25€42.40
€50.25
+18.5%
6.2%€54.76€44.72n/a16
Aug ’25€45.60
€50.76
+11.3%
6.2%€55.50€45.33n/a16
Jul ’25€40.20
€51.87
+29.0%
7.4%€56.94€42.94n/a16
Jun ’25€39.80
€53.28
+33.9%
6.7%€60.63€46.64n/a16
May ’25€41.60
€53.28
+28.1%
6.7%€60.63€46.64n/a16
Apr ’25€46.60
€55.26
+18.6%
7.3%€63.94€45.67n/a16
Mar ’25€43.80
€55.57
+26.9%
6.4%€60.34€46.42n/a15
Feb ’25€45.60
€54.68
+19.9%
7.3%€59.97€46.13n/a15
Jan ’25€46.40
€48.46
+4.4%
11.9%€56.69€39.32n/a14
Dec ’24€40.80
€45.65
+11.9%
7.7%€52.41€39.54n/a14
Nov ’24€35.60
€46.81
+31.5%
7.5%€53.69€42.39€47.0013
Oct ’24€37.20
€48.60
+30.7%
6.0%€53.92€43.51€41.6013
Sep ’24€38.80
€46.68
+20.3%
6.8%€52.01€39.23€42.4012
Aug ’24€42.80
€46.07
+7.6%
6.7%€51.57€38.91€45.6012
Jul ’24€34.80
€45.47
+30.7%
11.4%€55.21€36.80€40.2012
Jun ’24€33.00
€46.11
+39.7%
11.2%€55.99€39.19€39.8012
May ’24€33.20
€45.44
+36.9%
10.9%€54.33€38.03€41.6011
Apr ’24€36.40
€56.08
+54.1%
16.0%€69.19€39.67€46.6012
Mar ’24€49.80
€59.29
+19.1%
11.7%€70.43€48.83€43.8011
Feb ’24€48.00
€57.95
+20.7%
11.8%€69.14€47.94€45.6011
Jan ’24€43.80
€58.20
+32.9%
12.8%€70.71€47.14€46.4011
Dec ’23€51.50
€61.63
+19.7%
11.8%€75.28€53.20€40.8010
Nov ’23€54.50
€62.35
+14.4%
12.4%€75.97€53.68€35.609

Analyst Forecast: Target price is less than 20% higher than the current share price.

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