Assessing Associated Banc-Corp (ASB) Valuation After Recent Share Price Momentum And Earnings Outlook
Without a specific news headline driving attention today, Associated Banc-Corp (ASB) still offers plenty for investors to consider, from its recent share performance to its current earnings profile and value characteristics.
See our latest analysis for Associated Banc-Corp.
The current share price of $27.26 sits alongside a 30 day share price return of 5.82% and a one year total shareholder return of 15.60%, suggesting that recent momentum has added to a longer term compounding effect.
If ASB has you thinking about regional banks, it can also be useful to scan the broader financials space and compare it with fast growing stocks with high insider ownership.
With ASB trading at $27.26, alongside an indicated 40% intrinsic discount and a value score of 5, the key question is whether this reflects a genuine mispricing or whether the market is already factoring in future growth.
Most Popular Narrative: 9.4% Undervalued
At $27.26, the most followed narrative implies a fair value of $30.10, which lines up with a moderate discount driven by specific growth and margin assumptions.
The company's strategic pivot toward growing commercial and industrial (C&I) lending, replacing lower-yielding residential balances with higher-yielding, relationship-focused assets, is driving record net interest income and margin expansion, positioning the balance sheet for sustained profitability growth. Likely to positively impact revenue and net margins.
Curious what kind of revenue growth, margin lift and future earnings multiple need to hold for that fair value to stack up? The narrative leans on specific compounding assumptions and a tighter profitability profile than the past. If you want to see exactly how those inputs translate into $30.10 today, the full story presents the numbers line by line.
Result: Fair Value of $30.10 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this hinges on credit quality and funding staying supportive. A setback in commercial or CRE lending, or pressure on deposit growth, could quickly challenge that view.
Find out about the key risks to this Associated Banc-Corp narrative.
Build Your Own Associated Banc-Corp Narrative
If you look at the numbers and reach a different conclusion, or simply prefer to test your own assumptions line by line, you can build a personalised view of ASB in just a few minutes with Do it your way.
A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Associated Banc-Corp.
Looking for more investment ideas?
If ASB has sharpened your focus, do not stop here. Broaden your watchlist with a few focused stock ideas that could complement your current thinking.
- Target potential value by checking out these 887 undervalued stocks based on cash flows that align with your preferred financial profile and risk appetite.
- Explore emerging technology by scanning these 24 AI penny stocks that are harnessing artificial intelligence in their business models.
- Strengthen your income stream by reviewing these 12 dividend stocks with yields > 3% that may suit a steady, yield focused approach.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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