Webster Financial Corporation

NYSE:WBS Stock Report

Market Cap: US$10.3b

Webster Financial Valuation

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

Below Fair Value: WBS ($59.55) is trading below our estimate of fair value ($133.59)

Significantly Below Fair Value: WBS 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?

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

The above table shows the Price to Earnings ratio for WBS. This is calculated by dividing WBS's market cap by their current earnings.
What is WBS's PE Ratio?
PE Ratio13.6x
EarningsUS$751.84m
Market CapUS$10.28b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WBS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.8x
WAL Western Alliance Bancorporation
13.8x22.7%US$9.7b
CFR Cullen/Frost Bankers
17.1x1.4%US$8.8b
ONB Old National Bancorp
13.3x13.2%US$6.7b
PNFP Pinnacle Financial Partners
23x23.6%US$9.4b
WBS Webster Financial
13.6x15.2%US$10.3b

Price-To-Earnings vs Peers: WBS is good value based on its Price-To-Earnings Ratio (13.6x) compared to the peer average (16.8x).

Price to Earnings Ratio vs Industry

How does WBS'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
WBS 13.6xIndustry Avg. 12.8xNo. of Companies75PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WBS is expensive based on its Price-To-Earnings Ratio (13.6x) compared to the US Banks industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is WBS'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 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.6x
Fair PE Ratio17.2x

Price-To-Earnings vs Fair Ratio: WBS is good value based on its Price-To-Earnings Ratio (13.6x) compared to the estimated Fair Price-To-Earnings Ratio (17.2x).

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 WBS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$59.55
US$62.62
+5.1%
5.8%US$70.00US$58.00n/a13
Nov ’25US$50.72
US$60.00
+18.3%
4.1%US$63.00US$54.00n/a13
Oct ’25US$44.86
US$55.47
+23.6%
5.3%US$60.00US$50.00n/a15
Sep ’25US$47.43
US$55.06
+16.1%
6.2%US$60.00US$49.00n/a16
Aug ’25US$46.21
US$54.88
+18.8%
6.2%US$60.00US$49.00n/a16
Jul ’25US$44.26
US$55.56
+25.5%
7.4%US$61.00US$46.00n/a16
Jun ’25US$44.22
US$57.13
+29.2%
6.7%US$65.00US$50.00n/a16
May ’25US$44.38
US$57.13
+28.7%
6.7%US$65.00US$50.00n/a16
Apr ’25US$49.54
US$60.50
+22.1%
7.3%US$70.00US$50.00n/a16
Mar ’25US$47.26
US$59.87
+26.7%
6.4%US$65.00US$50.00n/a15
Feb ’25US$47.17
US$59.27
+25.6%
7.3%US$65.00US$50.00n/a15
Jan ’25US$50.76
US$53.00
+4.4%
11.9%US$62.00US$43.00n/a14
Dec ’24US$46.80
US$49.64
+6.1%
7.7%US$57.00US$43.00n/a14
Nov ’24US$37.95
US$49.69
+30.9%
7.5%US$57.00US$45.00US$50.7213
Oct ’24US$40.31
US$51.38
+27.5%
6.0%US$57.00US$46.00US$44.8613
Sep ’24US$43.56
US$51.17
+17.5%
6.8%US$57.00US$43.00US$47.4312
Aug ’24US$45.89
US$50.92
+11.0%
6.7%US$57.00US$43.00US$46.2112
Jul ’24US$37.75
US$49.42
+30.9%
11.4%US$60.00US$40.00US$44.2612
Jun ’24US$36.33
US$49.42
+36.0%
11.2%US$60.00US$42.00US$44.2212
May ’24US$36.86
US$50.18
+36.1%
10.9%US$60.00US$42.00US$44.3811
Apr ’24US$39.42
US$60.79
+54.2%
16.0%US$75.00US$43.00US$49.5412
Mar ’24US$52.14
US$63.14
+21.1%
11.7%US$75.00US$52.00US$47.2611
Feb ’24US$53.79
US$62.86
+16.9%
11.8%US$75.00US$52.00US$47.1711
Jan ’24US$47.34
US$61.73
+30.4%
12.8%US$75.00US$50.00US$50.7611
Dec ’23US$53.72
US$61.40
+14.3%
11.8%US$75.00US$53.00US$46.8010
Nov ’23US$54.58
US$61.56
+12.8%
12.4%US$75.00US$53.00US$37.959

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

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