Arrow Financial Corporation

NasdaqGS:AROW Stock Report

Market Cap: US$547.4m

Arrow Financial Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: AROW ($33.45) is trading below our estimate of fair value ($46.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AROW. This is calculated by dividing AROW's market cap by their current earnings.
What is AROW's PE Ratio?
PE Ratio17x
EarningsUS$32.96m
Market CapUS$547.36m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AROW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.5x
MSBI Midland States Bancorp
11.7x15.0%US$572.9m
PFIS Peoples Financial Services
93.5x68.2%US$548.2m
GCBC Greene County Bancorp
21.9xn/aUS$525.6m
HBIA Hills Bancorporation
14.8xn/aUS$635.7m
AROW Arrow Financial
17x17.0%US$547.4m

Price-To-Earnings vs Peers: AROW is good value based on its Price-To-Earnings Ratio (17x) compared to the peer average (35.5x).

Price to Earnings Ratio vs Industry

How does AROW's PE Ratio compare vs other companies in the US Banks Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FRCB First Republic Bank
0.02xn/aUS$27.98m
BKGM BankGuam Holding
1xn/aUS$18.48m
SBNY Signature Bank
0.002xn/aUS$2.18m
BCBH.F Caribbean Investment Holdings
0.00001xn/aUS$132.00
No more companies available in this PE range
AROW 17.0xIndustry Avg. 12.9xNo. of Companies92PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AROW is expensive based on its Price-To-Earnings Ratio (17x) compared to the US Banks industry average (12.9x).

Price to Earnings Ratio vs Fair Ratio

What is AROW'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.

AROW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17x
Fair PE Ratio14.4x

Price-To-Earnings vs Fair Ratio: AROW is expensive based on its Price-To-Earnings Ratio (17x) compared to the estimated Fair Price-To-Earnings Ratio (14.4x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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