Is Westamerica Bancorporation overvalued or undervalued?
As of April 25, 2024, Westamerica Bancorporation is fairly valued with a P/E ratio of 10, competitive among peers, a high ROCE of 57.36%, and a recent positive return of 2.39%, despite underperforming against the S&P 500 over the past year.
As of 25 April 2024, the valuation grade for Westamerica Bancorporation has moved from expensive to fair. Based on the analysis, the company is currently fairly valued. The P/E ratio stands at 10, which is lower than the industry average, while the Price to Book Value is 1.38, and the EV to EBIT ratio is 3.77. In comparison with peers, Heartland Financial USA, Inc. has a P/E of 15.43, and Banner Corp. has a P/E of 11.99, indicating that Westamerica Bancorporation is positioned competitively within its peer group. Additionally, the company's ROCE is notably high at 57.36%, suggesting strong operational efficiency. While Westamerica's stock has underperformed against the S&P 500 over the past year, it has shown a positive return of 2.39% over the past week, which may indicate a potential for recovery.
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