Webster Financial Corporation

DB:WED Stock Report

Market Cap: €9.9b

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.

Discounted Cash Flow
Simply Wall St
€166.74
Fair Value
65.5% undervalued intrinsic discount
15
Number of Analysts

Below Fair Value: WED (€57.5) is trading below our estimate of fair value (€166.74)

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 Ratio13.4x
EarningsUS$752.06m
Market CapUS$10.26b

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 Average7.2x
CBK Commerzbank
10.6x11.1%€22.5b
601838 Bank of Chengdu
0.5x-107.0%CN¥70.3b
600926 Bank of Hangzhou
5.6x15.8%CN¥89.4b
WAL Western Alliance Bancorporation
12.1x18.0%US$9.8b
WED Webster Financial
13.4x15.4%€10.3b

Price-To-Earnings vs Peers: WED is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the peer average (7.2x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WED 13.4xIndustry Avg. 8.3xNo. of Companies42PE0612182430+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WED is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the European Banks industry average (8.3x).

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 Ratio13.4x
Fair PE Ratio12.5x

Price-To-Earnings vs Fair Ratio: WED is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the estimated Fair Price-To-Earnings Ratio (12.5x).

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€57.50
€67.32
+17.1%
7.9%€77.02€56.80n/a15
Feb ’26€58.00
€66.65
+14.9%
7.9%€76.25€56.23n/a15
Jan ’26€52.50
€65.10
+24.0%
7.8%€73.30€56.91n/a14
Dec ’25€58.00
€59.08
+1.9%
5.6%€66.09€54.76n/a14
Nov ’25€47.00
€55.61
+18.3%
4.0%€58.26€49.93n/a14
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€46.13€58.0015
Jan ’25€46.40
€48.46
+4.4%
11.9%€56.69€39.32€52.5014
Dec ’24€40.80
€45.65
+11.9%
7.7%€52.41€39.54€58.0014
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
Analyst Price Target
Consensus Narrative from 15 Analysts
€68.40
Fair Value
15.9% undervalued intrinsic discount
15
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/12 01:35
End of Day Share Price 2025/02/12 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Webster Financial Corporation is covered by 28 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jason GoldbergBarclays
Jared ShawBarclays
Bruce HartingBarclays