Texas Capital Valuation
| TCBIO Preferred Stock | USD 21.52 0.52 2.48% |
At this time, the company appears to be fairly valued. Texas Capital Bancshares has a current Real Value of $21.55 per share. The regular price of the company is $21.52. Our model measures the value of Texas Capital Bancshares from inspecting the company fundamentals such as Operating Margin of 0.38 %, shares owned by institutions of 24.13 %, and Return On Equity of 0.11 as well as reviewing its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that Texas Capital's price fluctuation is very steady at this time. Calculation of the real value of Texas Capital Bancshares is based on 3 months time horizon. Increasing Texas Capital's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Texas Capital is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Texas Preferred Stock. However, Texas Capital's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 21.52 | Real 21.55 | Hype 21.52 | Naive 21.98 |
The intrinsic value of Texas Capital's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Texas Capital's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Texas Capital Bancshares helps investors to forecast how Texas preferred stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Texas Capital more accurately as focusing exclusively on Texas Capital's fundamentals will not take into account other important factors: Texas Capital Total Value Analysis
Texas Capital Bancshares is at this time forecasted to have takeover price of (3.77 B) with market capitalization of 3.31 B, debt of 2.13 B, and cash on hands of 3.59 B. The negative valuation of Texas Capital may imply that the market is not capable to price the future growth of the company or it is pricing it at zero value. It may also suggest that takeover valuation may not have captured all of the outstanding financial obligations of the company both on and off balance sheet. Investors should thoroughly investigate all of the Texas Capital fundamentals.| Takeover Price | Market Cap | Debt Obligations | Cash |
(3.77 B) | 3.31 B | 2.13 B | 3.59 B |
Texas Capital Investor Information
About 24.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 28th of February 2023. Based on the analysis of Texas Capital's profitability, liquidity, and operating efficiency, Texas Capital Bancshares is not in a good financial situation at the present time. It has a very high likelihood of going through financial trouble in January.Texas Capital Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Texas Capital has an asset utilization ratio of 3.44 percent. This suggests that the Company is making $0.0344 for each dollar of assets. An increasing asset utilization means that Texas Capital Bancshares is more efficient with each dollar of assets it utilizes for everyday operations.Texas Capital Ownership Allocation
The market capitalization of Texas Capital is $3.31 Billion. About 75.87 % of Texas Capital outstanding shares are held by general public with 24.13 % by institutional holders. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the company is less than the current market value, you may not be able generate positive returns on investment in the long run.Texas Capital Profitability Analysis
The company reported the revenue of 976.76 M. Net Income was 332.48 M with profit before overhead, payroll, taxes, and interest of 1.16 B.Texas Capital Past Distributions to stockholders
About Texas Capital Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Texas Capital Bancshares. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Texas Capital Bancshares based exclusively on its fundamental and basic technical indicators. By analyzing Texas Capital's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Texas Capital's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Texas Capital. We calculate exposure to Texas Capital's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Texas Capital's related companies.Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. Texas Capital Bancshares, Inc. was incorporated in 1996 and is headquartered in Dallas, Texas. Texas Cap operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 1751 people.
8 Steps to conduct Texas Capital's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Texas Capital's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Texas Capital's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Texas Capital's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Texas Capital's revenue streams: Identify Texas Capital's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Texas Capital's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Texas Capital's growth potential: Evaluate Texas Capital's management, business model, and growth potential.
- Determine Texas Capital's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Texas Capital's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Texas Capital represents a small ownership stake in the entity. As a stockholder of Texas, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Texas Capital Dividends Analysis For Valuation
Please note that Texas Capital has scaled down on payment of dividends at this time.
There are various types of dividends Texas Capital can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Texas shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Texas Capital Bancshares directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Texas pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Texas Capital by the value of the dividends paid out.
Texas Capital Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 48.8 M | |
| Quarterly Earnings Growth Y O Y | 2.566 | |
| Retained Earnings | 2.3 B | |
| Retained Earnings Total Equity | 2.3 B |
Other Information on Investing in Texas Preferred Stock
Texas Capital financial ratios help investors to determine whether Texas Preferred Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Texas with respect to the benefits of owning Texas Capital security.