Webster Financial Corporation

NYSE:WBS.PRF Stock Report

Market Cap: US$10.4b

Webster Financial Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Discounted Cash Flow
Simply Wall St
US$49.74
Fair Value
59.8% undervalued intrinsic discount
15
Number of Analysts

Below Fair Value: WBS.PRF ($20.02) is trading below our estimate of fair value ($49.74)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for WBS.PRF?

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

The above table shows the Price to Earnings ratio for WBS.PRF. This is calculated by dividing WBS.PRF's market cap by their current earnings.
What is WBS.PRF's PE Ratio?
PE Ratio14x
EarningsUS$752.06m
Market CapUS$10.37b

Price to Earnings Ratio vs Peers

How does WBS.PRF's PE Ratio compare to its peers?

The above table shows the PE ratio for WBS.PRF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.6x
WAL Western Alliance Bancorporation
12.8x18.0%US$9.7b
CFR Cullen/Frost Bankers
15.7x0.5%US$9.0b
WTFC Wintrust Financial
13.1x5.4%US$8.6b
PNFP Pinnacle Financial Partners
21x18.3%US$9.6b
WBS.PRF Webster Financial
14x15.4%US$10.4b

Price-To-Earnings vs Peers: WBS.PRF is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (15.6x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FRCB First Republic Bank
0.02xn/aUS$27.98m
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
WBS.PRF 14.0xIndustry Avg. 12.2xNo. of Companies84PE0612182430+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WBS.PRF is expensive based on its Price-To-Earnings Ratio (14x) compared to the US Banks industry average (12.2x).

Price to Earnings Ratio vs Fair Ratio

What is WBS.PRF'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.

WBS.PRF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ratio17x

Price-To-Earnings vs Fair Ratio: WBS.PRF is good value based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (17x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Price Target
Consensus Narrative from 15 Analysts
US$22.80
Fair Value
12.2% undervalued intrinsic discount
15
Number of Analysts

Analyst Forecast: Insufficient data to show price forecast.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/06 06:06
End of Day Share Price 2025/02/06 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Webster Financial Corporation is covered by 28 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jason GoldbergBarclays
Jared ShawBarclays
Bruce HartingBarclays