Valley National Bancorp

NasdaqGS:VLY Stock Report

Market Cap: US$5.7b

Valley National Bancorp Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: VLY ($10.15) is trading below our estimate of fair value ($11.82)

Significantly Below Fair Value: VLY is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for VLY. This is calculated by dividing VLY's market cap by their current earnings.
What is VLY's PE Ratio?
PE Ratio17.8x
EarningsUS$317.67m
Market CapUS$5.69b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for VLY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.3x
FNB F.N.B
14.8x16.2%US$5.9b
OZK Bank OZK
7.8x4.9%US$5.4b
UMBF UMB Financial
15x35.6%US$5.9b
HOMB Home Bancshares (Conway AR)
15.6x4.6%US$6.1b
VLY Valley National Bancorp
17.8x28.6%US$5.7b

Price-To-Earnings vs Peers: VLY is expensive based on its Price-To-Earnings Ratio (17.8x) compared to the peer average (13.3x).

Price to Earnings Ratio vs Industry

How does VLY'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
VLY 17.8xIndustry Avg. 12.8xNo. of Companies75PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VLY is expensive based on its Price-To-Earnings Ratio (17.8x) compared to the US Banks industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is VLY'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.

VLY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.8x
Fair PE Ratio20.5x

Price-To-Earnings vs Fair Ratio: VLY is good value based on its Price-To-Earnings Ratio (17.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).

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 VLY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$10.15
US$10.80
+6.4%
6.6%US$12.00US$10.00n/a10
Nov ’25US$9.42
US$10.55
+12.0%
5.8%US$12.00US$10.00n/a10
Oct ’25US$8.70
US$9.10
+4.6%
7.3%US$10.00US$8.00n/a10
Sep ’25US$8.68
US$8.75
+0.8%
8.9%US$10.00US$7.00n/a10
Aug ’25US$7.94
US$8.60
+8.3%
8.9%US$10.00US$7.00n/a10
Jul ’25US$6.89
US$8.20
+19.0%
11.9%US$10.00US$7.00n/a10
Jun ’25US$7.13
US$8.73
+22.4%
8.2%US$10.00US$8.00n/a11
May ’25US$7.30
US$9.38
+28.4%
15.4%US$12.50US$8.00n/a12
Apr ’25US$7.88
US$10.58
+34.3%
15.5%US$12.50US$8.00n/a12
Mar ’25US$8.02
US$11.32
+41.1%
9.7%US$12.50US$9.00n/a11
Feb ’25US$8.96
US$11.36
+26.8%
9.9%US$12.50US$8.50n/a11
Jan ’25US$10.86
US$10.64
-2.1%
11.9%US$12.50US$8.50n/a11
Dec ’24US$9.61
US$9.91
+3.1%
11.3%US$12.00US$8.00n/a11
Nov ’24US$7.75
US$9.95
+28.4%
11.8%US$12.00US$8.00US$9.4210
Oct ’24US$8.56
US$10.80
+26.2%
12.3%US$12.00US$8.50US$8.7010
Sep ’24US$9.44
US$11.00
+16.5%
10.6%US$12.00US$8.00US$8.6810
Aug ’24US$9.91
US$11.00
+11.0%
10.6%US$12.00US$8.00US$7.9410
Jul ’24US$7.75
US$10.45
+34.8%
12.6%US$13.00US$8.00US$6.8910
Jun ’24US$7.44
US$10.65
+43.1%
11.5%US$13.00US$8.00US$7.1310
May ’24US$7.53
US$10.75
+42.8%
9.6%US$13.00US$9.00US$7.3010
Apr ’24US$9.24
US$12.82
+38.7%
12.3%US$15.50US$10.00US$7.8811
Mar ’24US$11.48
US$13.45
+17.2%
9.0%US$15.50US$11.50US$8.0211
Feb ’24US$12.06
US$13.45
+11.6%
9.0%US$15.50US$11.50US$8.9611
Jan ’24US$11.31
US$14.00
+23.8%
8.7%US$16.00US$12.00US$10.8612
Dec ’23US$12.59
US$14.00
+11.2%
8.5%US$16.00US$12.00US$9.6110
Nov ’23US$11.94
US$14.10
+18.1%
7.4%US$16.00US$13.00US$7.7510

Analyst Forecast: Target price is less than 20% higher than the current share price.

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