Columbia Banking System (COLB): Revisiting Valuation After Recent Share Price Rebound

Columbia Banking System (COLB) has been edging higher recently, and that steady climb is catching investor attention. With the stock hovering around the high twenties, it is a good moment to revisit the bank’s fundamentals.

See our latest analysis for Columbia Banking System.

The recent drift higher toward a 1 month share price return of 6.64 percent and a year to date share price gain of 5.29 percent suggests momentum is gradually rebuilding, even though the 1 year total shareholder return remains slightly negative.

If COLB’s steady climb has you rethinking your financials exposure, it could be a good moment to also scout for opportunities among fast growing stocks with high insider ownership.

With earnings still growing faster than the share price and the stock trading at a steep discount to some intrinsic value estimates, is Columbia Banking System a quietly undervalued regional bank, or has the market already priced in its next leg of growth?

Most Popular Narrative: 4% Undervalued

With Columbia Banking System last closing at $28.28 versus a narrative fair value near $29.46, the current price sits just below that long term target.

The strategic expansion of fee based businesses (treasury management, trust/custodial services, commercial card, merchant, and international banking), including new lines brought by Pacific Premier, should diversify revenue streams well beyond traditional lending, providing steadier top line growth and helping to stabilize net margins.

Read the complete narrative.

Curious how double digit growth, rising margins, and a reset earnings multiple all line up to justify that valuation gap? The full narrative explains the details.

Result: Fair Value of $29.46 (UNDERVALUED)

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

However, this depends on smooth integrations and stable Western regional conditions, as missteps or a downturn could quickly pressure margins and loan growth.

Find out about the key risks to this Columbia Banking System narrative.

Build Your Own Columbia Banking System Narrative

If you see things differently or want to dig into the numbers yourself, you can build a custom view of COLB in just minutes, Do it your way.

A great starting point for your Columbia Banking System research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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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