Summit Financial Group, Inc.

NasdaqGS:SMMF Stock Report

Market Cap: US$377.4m

Summit Financial Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: SMMF ($25.7) is trading below our estimate of fair value ($72.34)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SMMF. This is calculated by dividing SMMF's market cap by their current earnings.
What is SMMF's PE Ratio?
PE Ratio6.6x
EarningsUS$57.29m
Market CapUS$377.45m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SMMF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.4x
SSBK Southern States Bancshares
11.3x13.1%US$364.1m
FRBA First Bank
9.3x1.6%US$364.6m
OBT Orange County Bancorp
11.7x11.1%US$334.0m
THVB Thomasville Bancshares
13.4xn/aUS$444.7m
SMMF Summit Financial Group
6.6x1.5%US$377.4m

Price-To-Earnings vs Peers: SMMF is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (8.2x).


Price to Earnings Ratio vs Industry

How does SMMF'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
SMMF 6.6xIndustry Avg. 12.9xNo. of Companies92PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SMMF is good value based on its Price-To-Earnings Ratio (6.6x) compared to the US Banks industry average (9.6x).


Price to Earnings Ratio vs Fair Ratio

What is SMMF'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.

SMMF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.6x
Fair PE Ratio9.3x

Price-To-Earnings vs Fair Ratio: SMMF is good value based on its Price-To-Earnings Ratio (6.6x) compared to the estimated Fair Price-To-Earnings Ratio (9.3x).


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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