BOK Financial (BOKF): Assessing Valuation After Capital Raise and Dividend Hike

BOK Financial (BOKF) recently priced a $400 million subordinated notes offering, aiming to reinforce its capital base and support core banking activities. This move follows the company's announcement of an increased quarterly dividend.

See our latest analysis for BOK Financial.

BOK Financial’s latest moves, including the new subordinated notes issue and dividend hike, come after some volatile months for the stock. While the share price has shown resilience in the last quarter, climbing 5%, the total shareholder return over one year is -4.39%, and stretches to an impressive 80% over five years, reflecting long-term momentum that is well above the industry average.

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With the stock trading at a notable discount to analyst price targets, the question for investors is clear: is BOK Financial’s value fully recognized by the market, or is there still an opportunity before growth accelerates?

Most Popular Narrative: 10% Undervalued

BOK Financial’s last close of $106.34 comes in well below the most popular narrative’s fair value calculation. The story driving this valuation is centered on revenue growth outpacing market expectations and a stronger regional lending franchise, potentially unlocking more upside for shareholders.

BOK Financial's strategic expansion into fast-growing markets like Texas and Arizona, alongside talent acquisition in key markets, positions the company to capitalize on secular migration and economic trends. This approach supports above-peer loan and revenue growth. The company's diversified fee income, which includes trading, wealth management, and treasury services, provides resilience against interest rate fluctuations and contributes to a more stable and growing earnings base.

Read the complete narrative.

Want to know what hidden financial levers are creating investor buzz? The most popular narrative banks on unique revenue drivers and assumes future earnings multiples usually seen in higher growth sectors. The real surprise? It isn’t the market consensus, but a handful of bold projections that might just turn heads. See which detailed estimates are making the difference behind the scenes.

Result: Fair Value of $118.70 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a regional economic slowdown or an increase in commercial real estate loan losses could quickly change the current outlook for BOK Financial.

Find out about the key risks to this BOK Financial narrative.

Another View: Market Multiples Challenge the DCF Narrative

While our DCF model suggests BOK Financial is undervalued, market-based price-to-earnings comparisons tell a different story. The company currently trades at 12.7x earnings, which is higher than both its peer average of 12.2x and the industry's 11.1x. Even the fair ratio stands lower at 11x, warning that the stock could be on the pricey side relative to its fundamentals. Does this gap reflect hidden strength, or does it signal caution for investors looking for true value?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own BOK Financial Narrative

If you see the story unfolding differently or you’d rather dig into the numbers on your terms, it only takes a few minutes to develop your own perspective. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding BOK Financial.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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