At this time, the company appears to be overvalued. Webster Financial maintains a prevalent Real Value of $44.68 per share. The last-minute price of the company is $52.1. Our model calculates the value of Webster Financial from examining the company fundamentals such as Current Valuation of 11.21 B, profit margin of 0.32 %, and Return On Asset of 0.01 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Webster Financial's valuation include:
Price Book
0.9861
Enterprise Value
11.2 B
Price Sales
3.7718
Forward PE
8.6207
Trailing PE
11.9222
Overvalued
Today 52.10
Please note that Webster Financial's price fluctuation is very steady at this time. Calculation of the real value of Webster Financial is based on 3 months time horizon. Increasing Webster Financial's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Webster stock is determined by what a typical buyer is willing to pay for full or partial control of Webster Financial. Since Webster Financial is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Webster Stock. However, Webster Financial'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 52.1
Real 44.68
Target 67.79
Hype 52.1
Naive 53.89
The intrinsic value of Webster Financial'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 Webster Financial'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 Webster Financial helps investors to forecast how Webster 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 Webster Financial more accurately as focusing exclusively on Webster Financial's fundamentals will not take into account other important factors:
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Webster Financial's intrinsic value based on its ongoing forecasts of Webster Financial's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Webster Financial's closest peers.
Webster Financial Cash
306.9 Million
Webster Valuation Trend
Webster Financial's real value is important for investors to make better decisions and a more accurate overall view of Webster Financial's financial worth over time. Using both Webster Financial's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Webster Revenue by Product
Webster Financial Total Value Analysis
Webster Financial is at this time forecasted to have company total value of 11.21 B with market capitalization of 8.93 B, debt of 909.18 M, and cash on hands of 613.12 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Webster Financial fundamentals before making security assessment based on enterprise value of the company
About 90.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 0.99. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Webster Financial has Price/Earnings To Growth (PEG) ratio of 1.93. The entity last dividend was issued on the 10th of February 2025. The firm had 2:1 split on the 15th of April 1998. Webster Financial may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Webster Financial has an asset utilization ratio of 4.97 percent. This implies that the Company is making $0.0497 for each dollar of assets. An increasing asset utilization means that Webster Financial is more efficient with each dollar of assets it utilizes for everyday operations.
Oil Shock
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Covid
Webster Financial Ownership Allocation
Webster Financial retains a total of 171.34 Million outstanding shares. The majority of Webster Financial outstanding shares are owned by institutional investors. These institutions are usually referred to as non-private investors looking to purchase positions in Webster Financial to benefit from reduced commissions. Consequently, other corporate entities are subject to a different set of regulations than regular investors in Webster Financial. Please pay attention to any change in the institutional holdings of Webster Financial as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company shows, if the real value of the company is less than the current market value, you may not be able to make money on it.
Webster Financial Profitability Analysis
The company reported the last year's revenue of 3.93 B. Total Income to common stockholders was 768.71 M with profit before taxes, overhead, and interest of 2.37 B.
Webster Financial Past Distributions to stockholders
The stock valuation mechanism determines Webster Financial's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Webster Financial based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Webster Financial. We calculate exposure to Webster Financial's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Webster Financial's related companies.
Webster Financial's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Webster Financial's value is low or high relative to the company's performance and growth projections. Determining the market value of Webster Financial can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Webster Financial represents a small ownership stake in the entity. As a stockholder of Webster, 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.
Webster Financial Dividends Analysis For Valuation
There are various types of dividends Webster Financial 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 Webster 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 Webster Financial directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Webster pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Webster Financial by the value of the dividends paid out.
Webster Financial Growth Indicators
Investing in growth stocks can be very risky. If the company such as Webster Financial does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding
170.2 M
Quarterly Earnings Growth Y O Y
-0.041
Forward Price Earnings
8.6207
Webster Financial Current Valuation Indicators
Webster Financial's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Webster Financial's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Webster Financial, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Webster Financial's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Webster Financial's worth.
Additional Tools for Webster Stock Analysis
When running Webster Financial's price analysis, check to measure Webster Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Webster Financial is operating at the current time. Most of Webster Financial's value examination focuses on studying past and present price action to predict the probability of Webster Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Webster Financial's price. Additionally, you may evaluate how the addition of Webster Financial to your portfolios can decrease your overall portfolio volatility.