Assessing Banc of California (BANC) Valuation as Shares Gain 12% Year to Date

Banc of California (BANC) shares have edged higher lately, with the stock up about 12% year to date and returning roughly 10% over the past three months. Investors seem to be considering the company’s growth story as markets assess recent performance.

See our latest analysis for Banc of California.

Banc of California’s latest share price return of nearly 12% this year stands out, with the momentum picking up pace over the past quarter. The total shareholder return over the last twelve months is a solid 8%, which suggests investors are gaining confidence in both near-term performance and the bank’s long-term prospects.

If you’re curious about where else momentum might be building, this is a great opportunity to discover fast growing stocks with high insider ownership

But with shares continuing to trend higher, the real question is whether Banc of California’s current price reflects its strong growth and improving fundamentals, or if there is still an opportunity for investors to benefit from further upside.

Most Popular Narrative: 15.7% Undervalued

At $17.06, Banc of California’s last close trades at a significant discount to the narrative’s fair value of $20.23. This gap reflects optimistic assumptions about future growth and earnings, which could set the stage for further upside based on company-specific catalysts.

The successful merger integration with Pacific Western Bank is unlocking cost synergies, revenue cross-sell opportunities, and scale benefits. These factors are already contributing to tangible book value expansion and margin improvement and are likely to further boost future profitability.

Read the complete narrative.

Curious how bold M&A bets and rapid digital advances combine to fuel this valuation target? There is a surprising strategic twist driving the profit leap forecast at the heart of this calculation. Want to see what is behind the number? Find out what the consensus believes will power the path to that higher price.

Result: Fair Value of $20.23 (UNDERVALUED)

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

However, a slowdown in loan growth or unexpected increases in deposit costs could quickly shift sentiment and challenge the bank’s positive outlook.

Find out about the key risks to this Banc of California narrative.

Another View: Looking Through the Lens of Multiples

While the market sees Banc of California as undervalued compared to narrative fair value, a closer look at its price-to-earnings ratio paints a different picture. The company trades at 15.7x earnings versus an industry average of 11.1x and a peer average of 14.1x. It also sits above its own fair ratio of 15.4x. This suggests investors are already paying a premium for potential growth, which could limit future upside if expectations are not met. Does this higher valuation signal caution or opportunity for those looking ahead?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Banc of California Narrative

If you want a fresh perspective or trust your own analysis more, you can dive into the numbers and craft your own narrative in just a few minutes. Do it your way

A great starting point for your Banc of California research is our analysis highlighting 3 key rewards and 1 important warning sign 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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