OFG Bancorp Valuation

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

Below Fair Value: OFG ($36.46) is trading below our estimate of fair value ($68.53)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

OFG 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 Ratio42x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for OFG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.7x
LOB Live Oak Bancshares
25x30.6%US$1.8b
CHCO City Holding
13.6x-3.2%US$1.5b
TBBK Bancorp
9.3x11.0%US$1.8b
CUBI Customers Bancorp
7.1x1.2%US$1.7b
OFG OFG Bancorp
9.5x0.2%US$1.7b

Price-To-Earnings vs Peers: OFG is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (13.7x).


Price to Earnings Ratio vs Industry

How does OFG'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
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: OFG is good value based on its Price-To-Earnings Ratio (9.5x) compared to the US Banks industry average (9.5x).


Price to Earnings Ratio vs Fair Ratio

What is OFG'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.

OFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio10.1x

Price-To-Earnings vs Fair Ratio: OFG is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (10.1x).


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 OFG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$36.46
US$42.75
+17.3%
4.2%US$45.00US$41.00n/a4
Mar ’25US$36.22
US$42.75
+18.0%
4.2%US$45.00US$41.00n/a4
Feb ’25US$36.77
US$42.75
+16.3%
4.2%US$45.00US$41.00n/a4
Jan ’25US$37.48
US$40.00
+6.7%
1.8%US$41.00US$39.00n/a4
Dec ’24US$34.81
US$38.00
+9.2%
4.2%US$40.00US$36.00n/a4
Nov ’24US$30.16
US$38.00
+26.0%
4.2%US$40.00US$36.00n/a4
Oct ’24US$29.86
US$37.63
+26.0%
3.2%US$39.00US$36.00n/a4
Sep ’24US$31.41
US$37.63
+19.8%
3.2%US$39.00US$36.00n/a4
Aug ’24US$33.66
US$37.63
+11.8%
3.2%US$39.00US$36.00n/a4
Jul ’24US$26.08
US$33.25
+27.5%
7.8%US$37.00US$30.00n/a4
Jun ’24US$24.90
US$33.25
+33.5%
7.8%US$37.00US$30.00n/a4
May ’24US$25.11
US$33.25
+32.4%
7.8%US$37.00US$30.00n/a4
Apr ’24US$24.94
US$33.50
+34.3%
6.8%US$36.00US$30.00n/a4
Mar ’24US$30.14
US$34.75
+15.3%
3.1%US$36.00US$33.00US$36.224
Feb ’24US$28.83
US$34.75
+20.5%
3.1%US$36.00US$33.00US$36.774
Jan ’24US$27.56
US$34.50
+25.2%
1.4%US$35.00US$34.00US$37.484
Dec ’23US$28.59
US$34.50
+20.7%
1.4%US$35.00US$34.00US$34.814
Nov ’23US$28.01
US$34.50
+23.2%
1.4%US$35.00US$34.00US$30.164
Oct ’23US$25.13
US$35.00
+39.3%
4.0%US$37.00US$33.00US$29.864
Sep ’23US$26.57
US$35.00
+31.7%
4.0%US$37.00US$33.00US$31.414
Aug ’23US$27.26
US$35.00
+28.4%
4.0%US$37.00US$33.00US$33.664
Jul ’23US$25.74
US$35.00
+36.0%
4.0%US$37.00US$33.00US$26.084
Jun ’23US$28.24
US$35.25
+24.8%
1.2%US$36.00US$35.00US$24.904
May ’23US$26.58
US$35.25
+32.6%
1.2%US$36.00US$35.00US$25.114
Apr ’23US$26.62
US$35.33
+32.7%
1.3%US$36.00US$35.00US$24.943
Mar ’23US$26.90
US$35.33
+31.4%
1.3%US$36.00US$35.00US$30.143

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


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