Prosperity Bancshares Valuation
| PB Stock | USD 60.25 0.11 0.18% |
At this time, the company appears to be fairly valued. Prosperity Bancshares holds a recent Real Value of $62.75 per share. The prevailing price of the company is $60.25. Our model determines the value of Prosperity Bancshares from analyzing the company fundamentals such as Return On Equity of 0.0609, shares outstanding of 95.91 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. Key fundamental drivers impacting Prosperity Bancshares' valuation include:
Price Book 0.8177 | Enterprise Value 9.3 B | Price Sales 5.3053 | Forward PE 12.0482 | Trailing PE 13.3836 |
Fairly Valued
Today
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 60.25 | Real 62.75 | Target 63.57 | Hype 60.48 | Naive 59.2 |
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.
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: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Prosperity Bancshares' intrinsic value based on its ongoing forecasts of Prosperity Bancshares' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Prosperity Bancshares' closest peers. When choosing an evaluation method for Prosperity Bancshares, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Prosperity Bancshares Investments |
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Prosperity Valuation Trend
Knowing Prosperity Bancshares' actual value is paramount for traders to make sound investment determinations. Prosperity Bancshares' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Prosperity Bancshares' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Prosperity Bancshares' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Prosperity Market Cap
Prosperity Bancshares is considered to be number one stock in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 6.45 Billion. Prosperity Bancshares totals roughly 5.79 Billion in market capitalization claiming about 90% of equities under Financials industry.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 second in price to earning category among related companies. It is considered to be number one stock in price to book category among related companies fabricating about 0.06 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Prosperity Bancshares is roughly 16.52 . The current year's Price To Book Ratio is expected to grow to 1.56. 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.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.6 B | 1.7 B | |
| Pretax Profit Margin | 0.33 | 0.40 | |
| Operating Profit Margin | 0.78 | 0.88 | |
| Net Profit Margin | 0.26 | 0.28 | |
| Gross Profit Margin | 0.90 | 0.80 |
Prosperity Bancshares Quarterly Retained Earnings |
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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.
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
At present, Prosperity Bancshares' Dividend Yield is projected to increase slightly based on the last few years of reporting. The current year's Dividend Payout Ratio is expected to grow to 0.52, whereas Dividends Paid is projected to grow to (195.4 M). . At present, Prosperity Bancshares' Retained Earnings are projected to increase significantly based on the last few years of reporting. The current year's Retained Earnings Total Equity is expected to grow to about 3.3 B, whereas Earning Assets are forecasted to decline to about 11 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -205.7 M | -195.4 M | |
| Dividend Yield | 0.03 | 0.03 | |
| Dividend Payout Ratio | 0.49 | 0.52 | |
| Dividend Paid And Capex Coverage Ratio | 3.80 | 3.61 |
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 Outstanding | 92.9 M | |
| Quarterly Earnings Growth Y O Y | -0.33 | |
| Forward Price Earnings | 12.0482 |
Prosperity Bancshares Current Valuation Indicators
Valuation refers to the process of determining the present value of Prosperity Bancshares and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Prosperity we look at many different elements of the entity such as Prosperity's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Prosperity Bancshares' valuation analysis is also 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 Prosperity Bancshares' 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 Prosperity Bancshares, 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 Prosperity Bancshares' 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 Prosperity Bancshares' worth.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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Complementary Tools for Prosperity Stock analysis
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.
Quarterly Earnings Growth (0.33) | Dividend Share 2.21 | Earnings Share 4.51 | Revenue Per Share 11.745 | Quarterly Revenue Growth (0.07) |
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.