Stellar Bancorp, Inc.

NYSE:STEL Stock Report

Market Cap: US$1.7b

Stellar Bancorp Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: STEL ($31.87) is trading below our estimate of fair value ($37.53)

Significantly Below Fair Value: STEL 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 STEL?

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

The above table shows the Price to Earnings ratio for STEL. This is calculated by dividing STEL's market cap by their current earnings.
What is STEL's PE Ratio?
PE Ratio14.5x
EarningsUS$117.06m
Market CapUS$1.66b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for STEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.5x
WABC Westamerica Bancorporation
10.6x-15.2%US$1.5b
NIC Nicolet Bankshares
14.1x2.5%US$1.7b
PEBO Peoples Bancorp
10.2x-2.2%US$1.2b
NBHC National Bank Holdings
15.2x6.3%US$1.9b
STEL Stellar Bancorp
14.5x-4.8%US$1.7b

Price-To-Earnings vs Peers: STEL is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (12.5x).

Price to Earnings Ratio vs Industry

How does STEL'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
STEL 14.5xIndustry Avg. 13.3xNo. of Companies92PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: STEL is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the US Banks industry average (13.2x).

Price to Earnings Ratio vs Fair Ratio

What is STEL'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.

STEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.5x
Fair PE Ratio11x

Price-To-Earnings vs Fair Ratio: STEL is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (11x).

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 STEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$31.87
US$28.80
-9.6%
4.0%US$30.00US$27.00n/a5
Nov ’25US$26.67
US$28.80
+8.0%
4.0%US$30.00US$27.00n/a5
Oct ’25US$24.89
US$28.60
+14.9%
5.7%US$31.00US$27.00n/a5
Sep ’25US$27.27
US$28.60
+4.9%
5.7%US$31.00US$27.00n/a5
Aug ’25US$26.43
US$28.60
+8.2%
5.7%US$31.00US$27.00n/a5
Jul ’25US$22.52
US$25.50
+13.2%
3.5%US$27.00US$24.50n/a5
Jun ’25US$22.59
US$25.50
+12.9%
3.5%US$27.00US$24.50n/a5
May ’25US$22.80
US$27.50
+20.6%
9.5%US$31.00US$24.50n/a5
Apr ’25US$23.89
US$29.70
+24.3%
4.5%US$31.00US$27.50n/a5
Mar ’25US$23.80
US$29.70
+24.8%
4.5%US$31.00US$27.50n/a5
Feb ’25US$24.90
US$29.70
+19.3%
4.5%US$31.00US$27.50n/a5
Jan ’25US$27.84
US$27.00
-3.0%
9.7%US$31.00US$24.00n/a5
Dec ’24US$24.94
US$25.60
+2.6%
5.3%US$27.00US$24.00n/a5
Nov ’24US$21.79
US$25.60
+17.5%
5.3%US$27.00US$24.00US$26.675
Oct ’24US$21.32
US$28.00
+31.3%
6.0%US$31.00US$26.00US$24.895
Sep ’24US$21.77
US$28.20
+29.5%
6.1%US$31.00US$26.00US$27.275
Aug ’24US$24.34
US$28.20
+15.9%
6.1%US$31.00US$26.00US$26.435
Jul ’24US$22.89
US$27.80
+21.5%
7.7%US$31.00US$25.00US$22.525
Jun ’24US$23.76
US$27.40
+15.3%
7.5%US$31.00US$25.00US$22.595
May ’24US$22.27
US$27.40
+23.0%
7.5%US$31.00US$25.00US$22.805
Apr ’24US$24.61
US$33.10
+34.5%
9.5%US$38.00US$29.00US$23.895
Mar ’24US$29.11
US$33.40
+14.7%
9.4%US$38.00US$29.00US$23.805
Feb ’24US$28.10
US$33.40
+18.9%
9.4%US$38.00US$29.00US$24.905
Jan ’24US$29.46
US$36.20
+22.9%
5.6%US$40.00US$34.00US$27.845
Dec ’23US$33.62
US$35.60
+5.9%
2.9%US$37.00US$34.00US$24.945
Nov ’23US$33.75
US$35.60
+5.5%
2.9%US$37.00US$34.00US$21.795

Analyst Forecast: Target price is lower than the current share price.

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