Prosperity Bancshares Valuation

PB Stock  USD 65.78  0.72  1.11%   
At this time, the company appears to be overvalued. Prosperity Bancshares holds a recent Real Value of $61.48 per share. The prevailing price of the company is $65.78. Our model determines the value of Prosperity Bancshares from analyzing the company fundamentals such as Return On Equity of 0.0609, shares outstanding of 93.53 M, and Operating Margin of 0.55 % as well as examining its technical indicators and probability of bankruptcy. In general, most investors support taking in undervalued entities and trading overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
Overvalued
Today
65.78
Please note that Prosperity Bancshares' price fluctuation is very steady at this time. Calculation of the real value of Prosperity Bancshares is based on 3 months time horizon. Increasing Prosperity Bancshares' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Prosperity Bancshares is useful when determining the fair value of the Prosperity stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Prosperity Bancshares. Since Prosperity Bancshares is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Prosperity Stock. However, Prosperity Bancshares' 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  65.78 Real  61.48 Hype  65.15 Naive  65.22
The real value of Prosperity Stock, also known as its intrinsic value, is the underlying worth of Prosperity Bancshares Company, which is reflected in its stock price. It is based on Prosperity Bancshares' financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Prosperity Bancshares' 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 Prosperity Bancshares' 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.
61.48
Real Value
71.57
Upside
Estimating the potential upside or downside of Prosperity Bancshares helps investors to forecast how Prosperity 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 Prosperity Bancshares more accurately as focusing exclusively on Prosperity Bancshares' fundamentals will not take into account other important factors:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
61.4263.5565.68
Details
Hype
Prediction
LowEstimatedHigh
63.5665.1566.74
Details
Potential
Annual Dividend
LowForecastedHigh
1.391.441.49
Details

Prosperity Bancshares Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Prosperity Bancshares's current stock value. Our valuation model uses many indicators to compare Prosperity Bancshares value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Prosperity Bancshares competition to find correlations between indicators driving Prosperity Bancshares's intrinsic value. More Info.
Prosperity Bancshares is regarded fifth in five year return category among related companies. It is considered to be number one stock in beta category among related companies totaling about  0.37  of Beta per Five Year Return. The ratio of Five Year Return to Beta for Prosperity Bancshares is roughly  2.70 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Prosperity Bancshares by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Prosperity Bancshares' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Prosperity Bancshares' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Prosperity Bancshares' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Prosperity Bancshares and how it compares across the competition.

About Prosperity Bancshares Valuation

The stock valuation mechanism determines the current worth of Prosperity Bancshares on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Prosperity Bancshares. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Prosperity Bancshares based exclusively on its fundamental and basic technical indicators. By analyzing Prosperity Bancshares's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Prosperity Bancshares's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Prosperity Bancshares. We calculate exposure to Prosperity Bancshares's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Prosperity Bancshares's related companies.
Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. Prosperity Bancshares, Inc. was founded in 1983 and is based in Houston, Texas. Prosperity Bancshares operates under BanksRegional classification in the United States and is traded on New York Stock Exchange. It employs 3592 people.

8 Steps to conduct Prosperity Bancshares' Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Prosperity Bancshares' 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 Prosperity Bancshares' valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Prosperity Bancshares' financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Prosperity Bancshares' revenue streams: Identify Prosperity Bancshares' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Prosperity Bancshares' industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Prosperity Bancshares' growth potential: Evaluate Prosperity Bancshares' management, business model, and growth potential.
  • Determine Prosperity Bancshares' 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 Prosperity Bancshares' estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Prosperity Bancshares' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Prosperity Bancshares' value is low or high relative to the company's performance and growth projections. Determining the market value of Prosperity Bancshares can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Prosperity Bancshares represents a small ownership stake in the entity. As a stockholder of Prosperity, 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.

Prosperity Bancshares Dividends Analysis For Valuation

There are various types of dividends Prosperity Bancshares 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 Prosperity 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 Prosperity Bancshares directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Prosperity pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Prosperity Bancshares by the value of the dividends paid out.

Prosperity Bancshares 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. Note, investing in growth stocks can be very risky. If the company such as Prosperity Bancshares 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 Outstanding92.9 M
Quarterly Earnings Growth Y O Y-0.33
Forward Price Earnings12.7065
When determining whether Prosperity Bancshares offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Prosperity Bancshares' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Prosperity Bancshares Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Prosperity Bancshares Stock:
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prosperity Bancshares. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
For information on how to trade Prosperity Stock refer to our How to Trade Prosperity Stock guide.
Note that the Prosperity Bancshares information on this page should be used as a complementary analysis to other Prosperity Bancshares' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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When running Prosperity Bancshares' price analysis, check to measure Prosperity Bancshares' 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 Prosperity Bancshares is operating at the current time. Most of Prosperity Bancshares' value examination focuses on studying past and present price action to predict the probability of Prosperity Bancshares' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Prosperity Bancshares' price. Additionally, you may evaluate how the addition of Prosperity Bancshares to your portfolios can decrease your overall portfolio volatility.
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Is Prosperity Bancshares' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Prosperity Bancshares. If investors know Prosperity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Prosperity Bancshares listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Prosperity Bancshares is measured differently than its book value, which is the value of Prosperity that is recorded on the company's balance sheet. Investors also form their own opinion of Prosperity Bancshares' value that differs from its market value or its book value, called intrinsic value, which is Prosperity Bancshares' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Prosperity Bancshares' market value can be influenced by many factors that don't directly affect Prosperity Bancshares' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Prosperity Bancshares' value and its price as these two are different measures arrived at by different means. Investors typically determine if Prosperity Bancshares is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prosperity Bancshares' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.