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Enterprise Financial Services (EFSC): Revisiting Valuation After Recent Share Pullback and Ongoing Earnings Growth

Simply Wall St · 2d ago

Enterprise Financial Services (EFSC) has quietly outperformed many regional peers over the past five years, and its recent mix of modest share pullback and solid earnings growth is giving value focused bank investors fresh reasons to revisit the stock.

See our latest analysis for Enterprise Financial Services.

At around $56 per share, Enterprise Financial Services has given investors a choppy ride recently, with a solid 1 month share price return but softer year to date progress, even as its 5 year total shareholder return remains clearly positive and suggests longer term momentum is still intact.

If EFSC’s steadier long term record has you thinking about where else the market might be underpricing growth and discipline, now could be a smart moment to explore fast growing stocks with high insider ownership.

With revenue and earnings still growing, and the shares trading at a notable discount to analyst targets and intrinsic value estimates, the key question now is whether EFSC is a genuine value opportunity or already priced for future growth.

Most Popular Narrative Narrative: 16.2% Undervalued

Compared with the last close at $56.14, the most popular narrative implies meaningful upside to a fair value anchored around $67, setting up a growth focused valuation story.

The analysts have a consensus price target of $67.0 for Enterprise Financial Services based on their expectations of its future earnings growth, profit margins and other risk factors.

In order for you to agree with the analyst's consensus, you would need to believe that by 2028, revenues will be $850.9 million, earnings will come to $205.1 million, and it would be trading on a PE ratio of 14.3x, assuming you use a discount rate of 6.8%.

Read the complete narrative.

Curious how steady but unspectacular growth, shifting profit margins, and a richer future earnings multiple can still justify upside from here? See how this narrative connects the dots.

Result: Fair Value of $67 (UNDERVALUED)

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

However, sustained fintech competition and rising commercial real estate credit risk could challenge EFSC’s growth, compress margins, and undermine the current undervaluation thesis.

Find out about the key risks to this Enterprise Financial Services narrative.

Build Your Own Enterprise Financial Services Narrative

If the consensus view does not quite fit your outlook and you would rather interrogate the numbers yourself, you can build a custom narrative in minutes, Do it your way.

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Enterprise Financial Services.

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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.