Should You Revisit Atlantic Union Bankshares After Sector News and a 5.5% Weekly Gain?

• Ever wondered if Atlantic Union Bankshares is trading for less than what it’s really worth? If you’re curious about snapping up a value play, you’re in the right place.
• This stock has made some notable moves lately, rising 5.5% over the past week but still down 7.9% so far this year. This pattern points to changing market sentiment or renewed optimism after a challenging stretch.
• Investors recently reacted to sector-wide news about regulatory clarity and shifting interest rates. Both of these factors can greatly influence regional banks like Atlantic Union Bankshares. These developments have brought new attention to financial stocks, pushing some off their lows and injecting a bit of volatility into prices.
• When we run Atlantic Union Bankshares through our six-point valuation check, it scores a 2 out of 6, indicating some attractive undervalued signals but also room for caution. Next, we’ll look into different valuation approaches and at the end, share a smarter way to interpret whether this stock is genuinely undervalued.

Atlantic Union Bankshares scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Atlantic Union Bankshares Excess Returns Analysis

The Excess Returns model offers a clear look into how effectively Atlantic Union Bankshares is deploying its capital. This approach focuses on what the company earns above its cost of equity, providing insight into the long-term value generated for shareholders. In essence, it measures how much value management creates over and above the required return investors expect for taking on risk.

According to the latest estimates, Atlantic Union Bankshares has a Book Value of $34.69 per share and a Stable EPS of $3.47 per share. These figures are based on weighted future Return on Equity projections from six analysts. The company’s Cost of Equity stands at $3.07 per share, resulting in an Excess Return of $0.41 per share. With an average Return on Equity of 9.29% and a Stable Book Value projected at $37.40 per share by nine analysts, the model signals steady value creation.

The Excess Returns analysis leads to an estimated intrinsic value that is 25.5% higher than the current share price. This model highlights both the bank’s ability to generate consistent above-average returns and a clear margin of safety for investors seeking value.

Result: UNDERVALUED

Our Excess Returns analysis suggests Atlantic Union Bankshares is undervalued by 25.5%. Track this in your watchlist or portfolio, or discover 926 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Atlantic Union Bankshares.

Approach 2: Atlantic Union Bankshares Price vs Earnings

The Price-to-Earnings (PE) ratio is a widely used valuation method for profitable companies like Atlantic Union Bankshares. Since this metric reflects what investors are willing to pay for each dollar of earnings, it serves as a snapshot of market expectations for future growth and risk level. Generally, companies with higher growth outlooks or lower perceived risk can justify higher PE ratios, while more mature or riskier businesses tend to trade at lower multiples.

Atlantic Union Bankshares currently trades at a PE ratio of 23.4x. By comparison, the average PE ratio for the banks industry is 11.4x, and the peer group average is 11.6x. However, these benchmarks do not factor in company-specific strengths such as earnings quality, margin resilience, or risk profile. In this context, the Simply Wall St “Fair Ratio” calculates what a fair PE multiple should be based on Atlantic Union Bankshares’ growth prospects, profit margins, market capitalization, and sector characteristics. For this stock, the proprietary Fair Ratio is 20.1x.

Because the Fair Ratio considers dynamic factors beyond just industry and peer medians, it provides a more tailored reference point for valuation. With Atlantic Union Bankshares’ current PE (23.4x) modestly above its Fair Ratio (20.1x), the shares appear slightly overvalued based on this measure.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1433 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Atlantic Union Bankshares Narrative

Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. Narratives are a powerful, accessible tool that helps you connect your personal perspective on a company with a financial forecast and an estimate of fair value. A Narrative is simply the story you believe about a business: what’s driving its growth, risks, and future potential, alongside your expectations for revenue, margins, and what the company should be worth. Rather than relying on generic ratios or analyst targets, Narratives link your own thesis about Atlantic Union Bankshares to the numbers and then to a unique fair value. This approach can make investing feel less abstract and more actionable.

On Simply Wall St’s Community page, Narratives are used by millions to share and compare perspectives, make investment calls, and continuously refine their thinking. Each Narrative’s fair value is updated automatically as new financials or news come in. For example, some investors are optimistic about the company’s digital expansion and see fair value as high as $45.00 if earnings and margins reach analyst targets. Others are more cautious, setting their fair value at $34.00 due to concerns about regional exposure and integration risks. Narratives empower you to make more informed decisions, grounded in your own outlook rather than today’s price or consensus opinion.

Do you think there's more to the story for Atlantic Union Bankshares? Head over to our Community to see what others are saying!

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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