The Bank of N.T. Butterfield & Son Limited

NYSE:NTB Stock Report

Mkt Cap: US$1.5b

We’ve recently updated our valuation analysis.

Bank of N.T. Butterfield & Son Valuation

Is NTB 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 NTB?

Other financial metrics that can be useful for relative valuation.

NTB 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 Ratio1.2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NTB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.1x
FNBT FineMark Holdings
12.7xn/aUS$353.5m
BAP Credicorp
9.3x7.8%US$11.2b
BKGM BankGuam Holding
7.8xn/aUS$138.6m
CIBH CIB Marine Bancshares
11xn/aUS$42.6m
NTB Bank of N.T. Butterfield & Son
7.9x6.5%US$1.5b

Price-To-Earnings vs Peers: NTB is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (10.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a

Price-To-Earnings vs Industry: NTB is good value based on its Price-To-Earnings Ratio (7.9x) compared to the US Banks industry average (9.6x)


Price to Earnings Ratio vs Fair Ratio

What is NTB'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.

NTB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ratio10.3x

Price-To-Earnings vs Fair Ratio: NTB is good value based on its Price-To-Earnings Ratio (7.9x) compared to the estimated Fair Price-To-Earnings Ratio (10.3x).


Share Price vs Fair Value

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

Below Fair Value: NTB ($31.19) is trading below our estimate of fair value ($102.8)

Significantly Below Fair Value: NTB 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 NTB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$31.19
US$39.60
+27.0%
11.2%US$48.00US$36.00n/a5
Jan ’24US$29.81
US$41.60
+39.6%
11.1%US$48.00US$36.00n/a5
Dec ’23US$34.52
US$42.60
+23.4%
8.9%US$48.00US$38.00n/a5
Nov ’23US$34.41
US$42.40
+23.2%
10.9%US$48.00US$38.00n/a5
Oct ’23US$32.46
US$42.20
+30.0%
10.4%US$48.00US$38.00n/a5
Sep ’23US$32.36
US$42.20
+30.4%
10.4%US$48.00US$38.00n/a5
Aug ’23US$33.62
US$42.20
+25.5%
10.4%US$48.00US$38.00n/a5
Jul ’23US$31.43
US$41.00
+30.4%
8.2%US$47.00US$38.00n/a5
Jun ’23US$31.27
US$41.40
+32.4%
7.4%US$47.00US$38.00n/a5
May ’23US$32.03
US$47.40
+48.0%
10.2%US$55.00US$41.00n/a5
Apr ’23US$35.67
US$47.40
+32.9%
10.2%US$55.00US$41.00n/a5
Mar ’23US$36.62
US$46.60
+27.3%
10.0%US$55.00US$41.00n/a5
Feb ’23US$37.79
US$42.00
+11.1%
9.9%US$49.00US$38.00n/a5
Jan ’23US$38.11
US$39.60
+3.9%
3.4%US$41.00US$38.00US$29.815
Dec ’22US$37.24
US$39.60
+6.3%
3.4%US$41.00US$38.00US$34.525
Nov ’22US$37.05
US$39.60
+6.9%
3.4%US$41.00US$38.00US$34.415
Oct ’22US$36.36
US$39.20
+7.8%
4.9%US$41.00US$36.00US$32.465
Sep ’22US$33.16
US$39.20
+18.2%
4.9%US$41.00US$36.00US$32.365
Aug ’22US$33.14
US$39.20
+18.3%
4.9%US$41.00US$36.00US$33.625
Jul ’22US$36.02
US$40.60
+12.7%
6.5%US$44.00US$36.00US$31.435
Jun ’22US$37.93
US$40.67
+7.2%
6.0%US$44.00US$36.00US$31.276
May ’22US$39.22
US$40.67
+3.7%
6.0%US$44.00US$36.00US$32.036
Apr ’22US$37.97
US$37.67
-0.8%
8.8%US$42.00US$34.00US$35.676
Mar ’22US$37.55
US$36.83
-1.9%
7.3%US$42.00US$34.00US$36.626
Feb ’22US$30.96
US$33.50
+8.2%
9.2%US$38.00US$29.00US$37.796
Jan ’22US$31.16
US$32.50
+4.3%
12.9%US$38.00US$26.00US$38.116

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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