Does Customers Bancorp’s 62.5% 2025 Rally Still Leave Room for Investors?

• Wondering if Customers Bancorp is still worth buying after its big run, or if most of the upside is already priced in? You are not alone.
• The stock has climbed 4.9% over the last week, 16.9% in the past month, and is now up an impressive 62.5% year to date, building on multi year gains of 60.5% over 1 year, 172.9% over 3 years, and 323.9% over 5 years.
• These moves have come alongside a shift in market sentiment toward regional banks, as investors have grown more comfortable with funding and credit risks across the sector. Customers Bancorp has also attracted attention for its digital forward strategy and balance sheet discipline, which many see as differentiators in a crowded banking space.
• Right now, Customers Bancorp scores a 3 out of 6 on our valuation checks. This suggests some metrics flag it as undervalued while others point to a fuller price. Next, we will break down what different valuation approaches say about the stock, and then finish with a more holistic way to judge whether the current price really makes sense.

Customers Bancorp delivered 60.5% returns over the last year. See how this stacks up to the rest of the Banks industry.

Approach 1: Customers Bancorp Excess Returns Analysis

The Excess Returns model looks at how much profit a bank can generate above the minimum return investors require on its equity, then projects and discounts those excess profits to estimate what the shares are worth today.

For Customers Bancorp, the starting point is a Book Value of $59.83 per share and Stable EPS of $8.61 per share, based on weighted future Return on Equity estimates from 8 analysts. With an Average Return on Equity of 12.47% and a Cost of Equity of $4.99 per share, the bank is expected to generate Excess Return of $3.62 per share, suggesting it can consistently earn more than its funding cost.

The model also assumes a Stable Book Value of $69.00 per share, sourced from 5 analysts. Combining these inputs, the Excess Returns valuation arrives at an intrinsic value of about $160.11 per share, indicating the stock is roughly 51.8% undervalued relative to its current price.

Result: UNDERVALUED

Our Excess Returns analysis suggests Customers Bancorp is undervalued by 51.8%. Track this in your watchlist or portfolio, or discover 899 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Customers Bancorp.

Approach 2: Customers Bancorp Price vs Earnings

For profitable companies like Customers Bancorp, the price to earnings, or PE, ratio is a useful way to gauge how much investors are willing to pay for each dollar of current earnings. A higher PE can be justified when a business has stronger growth prospects or lower perceived risk, while slower growth or higher risk usually warrant a lower, more conservative PE.

Customers Bancorp currently trades on a PE of 16.23x, which is above the broader Banks industry average of 11.94x and also higher than the 13.94x average of its peer group. On the surface, that premium suggests investors are already pricing in better than average performance. However, Simply Wall St’s proprietary Fair Ratio framework goes a step further by estimating what PE the stock should trade on, given its earnings growth outlook, profitability, risk profile, industry, and market cap. For Customers Bancorp, this Fair Ratio is 16.53x, indicating that the current valuation is slightly below what those fundamentals would justify. Overall, this suggests that the shares may be modestly undervalued on a PE basis.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1458 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Customers Bancorp Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let's introduce you to Narratives. These are simple stories investors create on Simply Wall St’s Community page to connect their view of a company with specific forecasts for revenue, earnings, and margins. They then link that forecast to a Fair Value, and compare it to today’s Price to decide whether to buy, hold, or sell. The Narrative automatically refreshes as new news or earnings arrive. For example, one investor might build a bullish Customers Bancorp Narrative around rapid digital banking adoption, expanding margins and a fair value closer to the most optimistic target of $90. Another, more cautious investor might emphasize regulatory and concentration risks, slower growth and a fair value nearer the $62 low end. Both can clearly see how their assumptions flow through to numbers and can quickly update their stance as fresh information comes in.

Do you think there's more to the story for Customers Bancorp? Head over to our Community to see what others are saying!

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.

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