Washington Trust Bancorp, Inc.

DB:WT1 Stock Report

Market Cap: €598.9m

Washington Trust Bancorp Valuation

Is WT1 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 WT1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WT1 (€34.2) is trading below our estimate of fair value (€70.04)

Significantly Below Fair Value: WT1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WT1?

Key metric: As WT1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for WT1. This is calculated by dividing WT1's market cap by their current earnings.
What is WT1's PE Ratio?
PE Ratio13.9x
EarningsUS$45.66m
Market CapUS$633.79m

Price to Earnings Ratio vs Peers

How does WT1's PE Ratio compare to its peers?

The above table shows the PE ratio for WT1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11x
PCZ ProCredit Holding
4.4x10.7%€462.9m
MBK Merkur PrivatBank KgaA
10.2x8.6%€109.7m
SPFI South Plains Financial
14.6x8.3%US$637.4m
CAC Camden National
14.7x24.1%US$686.7m
WT1 Washington Trust Bancorp
13.9x5.8%€636.9m

Price-To-Earnings vs Peers: WT1 is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (11x).

Price to Earnings Ratio vs Industry

How does WT1's PE Ratio compare vs other companies in the European Banks Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
WT1 13.9xIndustry Avg. 7.3xNo. of Companies45PE0612182430+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WT1 is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the European Banks industry average (7.2x).

Price to Earnings Ratio vs Fair Ratio

What is WT1'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.

WT1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.9x
Fair PE Ratio9.1x

Price-To-Earnings vs Fair Ratio: WT1 is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the estimated Fair Price-To-Earnings Ratio (9.1x).

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 WT1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€34.00
€31.03
-8.7%
1.5%€31.49€30.57n/a2
Nov ’25€31.20
€31.03
-0.5%
1.5%€31.49€30.57n/a2
Oct ’25€28.00
€26.65
-4.8%
1.7%€27.10€26.20n/a2
Sep ’25€29.00
€25.34
-12.6%
5.5%€26.73€23.96n/a2
Aug ’25€29.20
€25.34
-13.2%
5.5%€26.73€23.96n/a2
Jul ’25€25.00
€25.35
+1.4%
3.7%€26.29€24.41n/a2
Jun ’25€23.60
€25.35
+7.4%
3.7%€26.29€24.41n/a2
May ’25€23.60
€25.35
+7.4%
3.7%€26.29€24.41n/a2
Apr ’25€25.00
€24.99
-0.05%
3.7%€25.91€24.06n/a2
Mar ’25€23.40
€24.99
+6.8%
3.7%€25.91€24.06n/a2
Feb ’25€25.40
€24.99
-1.6%
3.7%€25.91€24.06n/a2
Jan ’25€29.80
€24.69
-17.2%
3.0%€25.60€23.77n/a3
Dec ’24€24.20
€24.63
+1.8%
8.3%€26.52€21.79n/a3
Nov ’24€21.60
€24.63
+14.0%
8.3%€26.52€21.79€31.203
Oct ’24€25.40
€28.09
+10.6%
12.4%€32.19€23.67€28.003
Sep ’24€25.40
€25.24
-0.6%
7.1%€27.04€23.44€29.002
Aug ’24€28.80
€25.24
-12.4%
7.1%€27.04€23.44€29.202
Jul ’24€26.20
€27.18
+3.7%
11.9%€30.41€23.96€25.002
Jun ’24€23.40
€27.18
+16.2%
11.9%€30.41€23.96€23.602
May ’24n/a
€27.17
0%
10.0%€29.88€24.45€23.602
Apr ’24n/a
€38.60
0%
9.3%€43.55€35.21€25.003
Mar ’24n/a
€40.80
0%
10.1%€44.17€34.97€23.403
Feb ’24n/a
€40.80
0%
10.1%€44.17€34.97€25.403
Jan ’24n/a
€53.44
0%
7.7%€60.21€49.17€29.804
Dec ’23n/a
€53.44
0%
7.7%€60.21€49.17€24.204
Nov ’23n/a
€53.44
0%
7.7%€60.21€49.17€21.604

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

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