Texas Capital Bancshares (TCBI) Stock Dropped, So What Is Driving Attention Now?

Texas Capital Bancshares (TCBI) has been removed from the NASDAQ Composite Index, an event that can reshape who owns the stock as index-tracking funds adjust their positions and liquidity patterns evolve.

Recent trading has already been soft, with the share price down 2.6% over the past week and 8.2% over the past month. The index removal arrives as investors reassess both liquidity and risk appetite around Texas Capital Bancshares. Even with this weaker near term share price return pattern, the bank still shows a 1-year total shareholder return of 5.5% and a 3-year total shareholder return above 50%. This indicates that longer term holders have seen materially stronger outcomes than those focused on recent momentum.

Contrast Texas Capital Bancshares’ index exit with other banks by scanning a curated list of solid balance sheet and fundamentals (25 results) that may handle liquidity shifts and index changes differently.

Texas Capital Bancshares now trades outside the NASDAQ Composite crowd, which puts you at a fork in the road. Do you step in after the drop, or wait and see what the valuation really says?

Most Popular Narrative: 15.9% Undervalued

On Simply Wall St’s most followed narrative, Texas Capital Bancshares screens as undervalued, with that view anchored to a fair value of $107.69 against a last close of $90.58. The gap between those two figures is what powers the current debate around whether the recent NASDAQ Composite exit has overshot fundamentals.

The ongoing build-out of fee-based businesses such as investment banking, trading, and treasury products is rapidly growing non-interest income streams, making overall earnings more resilient and scalable. Early success in cross-selling wealth management and other alternative investment solutions to newly-acquired high-quality commercial clients is anticipated to increase non-interest revenue and further deepen client relationships, which can smooth earnings through economic cycles.

See why 1 investors see Texas Capital Bancshares as 16% undervalued.

Result: Fair Value of $107.69 (UNDERVALUED)

Still, the Texas Capital Bancshares story carries real pressure points, from higher net charge offs in early 2026 to reputational and cost risks tied to the recent data breach.

Find out about the key risks to this Texas Capital Bancshares narrative.

Another Angle On Texas Capital Bancshares’ Valuation

The SWS DCF model presents a different perspective compared with the analyst target range. On that framework, Texas Capital Bancshares at $90.58 screens as undervalued relative to an estimated future cash flow value of $148.89. That is a wide gap. The key question is whether you place more weight on the cash flow analysis or on the consensus multiple.

Look into how the SWS DCF model arrives at its fair value.

Next Steps

Feeling the crosscurrents in sentiment around Texas Capital Bancshares after the index exit and valuation gap debate? Take a closer look at the underlying metrics yourself, then weigh up the potential benefits that have investors optimistic by reviewing 3 key rewards.

Looking for more Texas Capital Bancshares investment ideas?

If you are weighing your next move after Texas Capital Bancshares, consider broadening your watchlist with a few hand picked idea lists built from hard numbers, not hype.

• Target resilience first by scanning companies that pair healthier balance sheets with solid fundamentals through our list of solid balance sheet and fundamentals (25 results).
• Hunt for pricing gaps where quality and valuation intersect by reviewing our curated set of 20 high quality undiscovered gems.
• Tilt toward steadier profiles by checking businesses that screen with lower overall risk scores using the focused 31 resilient stocks with low risk scores.

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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