Why WaFd (WAFD) is on investors’ radar today
WaFd (WAFD) has drawn fresh attention after recent share price moves, with the stock last closing at US$35.56. Investors are weighing that level against the bank’s reported revenue and earnings profile.
See our latest analysis for WaFd.
WaFd’s recent pullback of less than 1% on the day comes after a stronger run, including a 14.12% 90 day share price return and a 29.38% 1 year total shareholder return, suggesting momentum has been building over time.
If this kind of steady progress has your attention, it can be useful to see what else is setting up well in the market and check out 20 top founder-led companies
With WaFd trading at US$35.56, only a small discount to its US$37.00 analyst price target and a modest intrinsic discount of 2.78%, you have to ask: is there real value left here, or is the market already pricing in future growth?
Most Popular Narrative: 14.7% Overvalued
At $35.56, WaFd trades above the most followed narrative fair value of $31.00, which is based on a detailed cash flow and earnings scenario.
The analysts have a consensus price target of $31.0 for WaFd based on their expectations of its future earnings growth, profit margins and other risk factors. In order for you to agree with the analysts, you would need to believe that by 2028, revenues will be $886.1 million, earnings will come to $269.3 million, and it would be trading on a PE ratio of 9.1x, assuming you use a discount rate of 7.5%.
Want to see what underpins that $31.00 fair value? The narrative leans heavily on steady revenue expansion, margin support and a lower future earnings multiple than the sector. The mix of growth assumptions and required valuation shift is where the story gets interesting.
Result: Fair Value of $31 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, if WaFd executes on its Build 2030 shift toward higher yielding commercial lending or grows fee income through WaFd Wealth Management, today’s overvaluation case could be challenged.
Find out about the key risks to this WaFd narrative.
Another angle on WaFd’s value
Our DCF model points to a fair value of about $36.58 per share, slightly above today’s $35.56 price, which contrasts with the $31.00 narrative fair value that suggests overvaluation. When two frameworks disagree like this, which set of assumptions do you find more convincing?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out WaFd for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 46 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
With mixed signals on value and sentiment, the most useful move now is to review the key facts yourself, decide where you stand, and then check the 3 key rewards and 1 important warning sign
Looking for more investment ideas?
If WaFd has sharpened your interest, do not stop here, the real edge often comes from comparing a few strong alternatives side by side.
- Target quality at a discount by checking out 46 high quality undervalued stocks that combine solid financials with prices that may not fully reflect their fundamentals.
- Build a steadier income stream by reviewing 10 dividend fortresses that focus on higher yields with an eye on sustainability.
- Prioritize resilience first by scanning 62 resilient stocks with low risk scores designed to highlight companies with lower overall risk profiles.
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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