Evaluating Bank of N.T. Butterfield & Son (NYSE:NTB)’s Valuation After Its Strong Recent Share Price Rally
Bank of N.T. Butterfield & Son (NYSE:NTB) has quietly put up a strong run, with the stock gaining about 11% over the past month and more than 40% year to date.
See our latest analysis for Bank of N.T. Butterfield & Son.
With the share price now at $51.22 and supported by a double digit 30 day share price return, Bank of N.T. Butterfield & Son’s momentum appears to be building on an already impressive five year total shareholder return of more than 100%.
If this kind of steady compounding appeals to you, it might be a good moment to broaden your search and discover fast growing stocks with high insider ownership
Yet with growth modest and the share price hovering just below analyst targets, investors now face a key question: Is Butterfield still undervalued on fundamentals, or is the market already pricing in its future gains?
Most Popular Narrative: 50% Undervalued
With Bank of N.T. Butterfield & Son last closing at $51.22, the most popular narrative points to a fair value roughly double that level, implying the market may be underestimating its future earnings power and capital returns.
Advanced digital transformation initiatives and continued investment in technology are expected to drive ongoing operational efficiencies, cost containment, and improved client service, which in turn should support better cost-to-income ratios and enhanced earnings over time.
Curious how flat revenues, slimmer margins, and aggressive buybacks can still add up to a much higher valuation? The narrative leans on disciplined earnings forecasts, a richer future earnings multiple, and a precise discount rate to bridge the gap. Want to see exactly how those numbers stack up and whether this confident fair value truly holds together?
Result: Fair Value of $51.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, significant deposit outflow risk and sensitivity to island economic downturns could quickly erode earnings stability and challenge that upbeat valuation case.
Find out about the key risks to this Bank of N.T. Butterfield & Son narrative.
Build Your Own Bank of N.T. Butterfield & Son Narrative
If you see the story differently, or simply want to dig into the numbers yourself, you can build a personalized view in just a few minutes: Do it your way
A great starting point for your Bank of N.T. Butterfield & Son research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
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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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