We’ve recently updated our valuation analysis.

Preferred Bank Valuation

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

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PFBC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio3.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PFBC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11x
HFWA Heritage Financial
12x7.7%US$983.3m
TMP Tompkins Financial
12.8x1.0%US$1.1b
RBCA.A Republic Bancorp
9.6x2.4%US$845.2m
SRCE 1st Source
9.8x-5.3%US$1.2b
PFBC Preferred Bank
7.7x2.2%US$990.7m

Price-To-Earnings vs Peers: PFBC is good value based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (11x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.2%
n/an/an/a

Price-To-Earnings vs Industry: PFBC is good value based on its Price-To-Earnings Ratio (7.7x) compared to the US Banks industry average (9.7x)


Price to Earnings Ratio vs Fair Ratio

What is PFBC'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.

PFBC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ratio9.6x

Price-To-Earnings vs Fair Ratio: PFBC is good value based on its Price-To-Earnings Ratio (7.7x) compared to the estimated Fair Price-To-Earnings Ratio (9.6x).


Share Price vs Fair Value

What is the Fair Price of PFBC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PFBC ($69) is trading below our estimate of fair value ($191.79)

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


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 PFBC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$69.00
US$83.50
+21.0%
6.5%US$90.00US$76.00n/a4
Jan ’24US$74.62
US$88.50
+18.6%
5.3%US$95.00US$82.00n/a4
Dec ’23US$75.37
US$89.75
+19.1%
6.2%US$95.00US$82.00n/a4
Nov ’23US$76.47
US$89.75
+17.4%
6.2%US$95.00US$82.00n/a4
Oct ’23US$65.23
US$86.50
+32.6%
7.5%US$95.00US$78.00n/a4
Sep ’23US$67.74
US$86.50
+27.7%
7.5%US$95.00US$78.00n/a4
Aug ’23US$72.21
US$85.20
+18.0%
7.5%US$95.00US$78.00n/a5
Jul ’23US$68.96
US$88.83
+28.8%
6.7%US$95.00US$78.00n/a6
Jun ’23US$67.16
US$89.50
+33.3%
5.3%US$95.00US$82.00n/a6
May ’23US$67.12
US$89.50
+33.3%
5.3%US$95.00US$82.00n/a6
Apr ’23US$72.94
US$92.00
+26.1%
5.4%US$100.00US$85.00n/a6
Mar ’23US$74.75
US$92.00
+23.1%
5.4%US$100.00US$85.00n/a6
Feb ’23US$78.27
US$89.50
+14.3%
7.1%US$100.00US$80.00n/a6
Jan ’23US$71.79
US$78.67
+9.6%
4.3%US$85.00US$75.00US$74.626
Dec ’22US$67.27
US$79.17
+17.7%
5.5%US$88.00US$75.00US$75.376
Nov ’22US$70.88
US$78.67
+11.0%
4.3%US$85.00US$75.00US$76.476
Oct ’22US$68.17
US$73.00
+7.1%
8.1%US$82.00US$67.00US$65.236
Sep ’22US$63.65
US$73.00
+14.7%
8.1%US$82.00US$67.00US$67.746
Aug ’22US$58.98
US$73.67
+24.9%
7.6%US$82.00US$67.00US$72.216
Jul ’22US$64.38
US$75.17
+16.8%
5.6%US$82.00US$71.00US$68.966
Jun ’22US$68.90
US$75.17
+9.1%
5.6%US$82.00US$71.00US$67.166
May ’22US$65.54
US$75.17
+14.7%
5.6%US$82.00US$71.00US$67.126
Apr ’22US$64.82
US$67.60
+4.3%
10.7%US$75.00US$54.00US$72.945
Mar ’22US$59.55
US$59.00
-0.9%
13.9%US$75.00US$53.00US$74.755
Feb ’22US$49.13
US$56.80
+15.6%
7.0%US$64.00US$53.00US$78.275
Jan ’22US$50.47
US$52.40
+3.8%
11.7%US$64.00US$46.00US$71.795

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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