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Peoples Bancorp (PEBO): Assessing Valuation After a Strong Quarter and Growing 5%+ Dividend Yield

Simply Wall St · 2d ago

Peoples Bancorp (PEBO) just turned heads with a stronger quarter, posting revenue growth, higher net income, and cleaner credit metrics, all while backing a dividend yield above 5% that has been increasing over time.

See our latest analysis for Peoples Bancorp.

That stronger quarter seems to be nudging sentiment in the right direction, with a roughly 7% 1 month share price return off the back of better credit quality, even as the 1 year total shareholder return of about negative 8% reminds investors that the longer term picture is still catching up.

If this kind of steady, income focused story has you rethinking your watchlist, it could be a good moment to explore fast growing stocks with high insider ownership for more ideas with punchier growth narratives.

But with shares still down over the past year, and trading below analyst targets and our estimate of intrinsic value even after the recent bounce, is Peoples Bancorp quietly undervalued or already reflecting the next leg of earnings growth?

Most Popular Narrative: 11.0% Undervalued

With the narrative fair value sitting above Peoples Bancorp's last close of $30.40, the story leans toward upside if its earnings roadmap holds.

Healthy pipelines for loan and deposit growth, competitive pricing discipline, and active capital management (including opportunistic share repurchases and a strategic approach to acquisitions) support long term revenue and book value growth, while taking advantage of regulatory trends that benefit well capitalized, efficiently run community banks.

Read the complete narrative.

Curious how shrinking top line expectations can still support a richer earnings profile and higher valuation multiple, without assuming aggressive industry like growth? The narrative leans on a powerful combination of margin expansion and disciplined capital deployment that reshapes the earnings base, but the precise mix of assumptions might surprise you. Want to see exactly how those moving pieces add up to the projected fair value and where the long term profit engine really kicks in?

Result: Fair Value of $34.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent credit issues in the leasing book and ongoing funding pressures from higher cost deposits could still derail the margin expansion story.

Find out about the key risks to this Peoples Bancorp narrative.

Build Your Own Peoples Bancorp Narrative

If you see the story differently or want to stress test the assumptions with your own inputs, you can build a custom view in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Peoples Bancorp.

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Before you move on, consider scanning a few hand picked stock ideas built from the same data driven engine powering this narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.