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Data-driven stock valuation

Preferred Bank (PFBC) fair value: what the stock is really worth

As of Nov 6, 2026: fair value (intrinsic value) of Preferred Bank stock $91.65, price $103, that is 10.9% below the price, quality 67 out of 100. Rating: overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.

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Financial Services US

PB Preferred Bank logo Broad data Nov 6, 2026

Preferred Bank

PFBC · US
Solid, but expensive

Our calculation puts a fair price 11% below what the stock costs today.

Quality 67/100
Highly profitable · 46.7% net margin (TTM)
3.1% dividend yield · Low payout
Ranks above peers (11/15)
Wide moat 68/100
Broad data
Costs just 9.6 times its yearly profit.
Mixed Growth (revenue 5y +17.8 %/yr in USD)
Fair value $91.65 · Overvalued (−10.9%)
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$108.66 $39.02 Fair Value $91.65 Aug 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.

How to read this chart

60‑month range $39.02 – $108.66 · fair‑value band $69.03 – $145.79 · the $102.89 price screens above the $91.65 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.

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Company profile

Preferred Bank provides various banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals.

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The company accepts checking, savings, and money market deposit accounts; fixed-rate and fixed maturity retail, and non-retail certificates of deposit; and individual retirement accounts.

It also provides real estate mortgage loans that are secured by retail, industrial, office, special purpose, and residential single and multi-family properties; real estate construction loans; commercial loans, including lines of credit for working capital, term loans for capital expenditures, and commercial and stand-by letters of credit; and small business administration loans for business purposes, such as owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing.

In addition, the company offers trade finance services, including commercial and export letters of credit, import lines of credit, documentary collections, international wire transfers, acceptances/trust receipt financing, export financing, and bills purchase programs.

Further, it provides cash management services; and internet, mobile, and tablet banking services. The company was incorporated in 1991 and is headquartered in Los Angeles, California.

Stock analysis

Preferred Bank (PFBC) currently trades at $102.89, while our model-based Fair Value estimate is $91.65, 11% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the Multiples group reads highest at a median of $119.91 per share, and 1 of the 6 models we run sit above the $102.89 price.

Bear case: the Asset-Based group reads lowest at $44.63, and 5 of the 6 models stay below the price. Data coverage for this calculation is high.

Scenario range: $69.03 (bear) to $145.79 (bull), the price of $102.89 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 67/100 (solid quality), in the Financial Services sector.

Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.

Preferred Bank reported revenue of $499M in FY2025 versus $219M in FY2021, a compound +22.9%/yr. Reported net income was $134M in FY2025, compounding +8.8%/yr from FY2021.

Key figures

Market cap $1.2B Small · P/E ratio 9.6 · P/S ratio 4.37 · EPS (TTM) $10.72 · Dividend yield 3.1% · Net margin 46.7% · Return on equity 16.9% · Return on assets (EBIT) 2.7% (5-year average).

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 68 out of 100 (medium confidence).

What moves the price

The share trades about 5% below its 52-week high and 27% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Financial Services peers we cover trades at −28% fair-value upside, at −11%, PFBC screens cheaper than that median.

Fair Value models

Bear $69.03 Fair Value $91.65 Bull $145.79
Price $102.89 · Downside -10.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($6.43 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Residual Income $69.03 $91.65 $145.79 74
Gordon GGM $27.14 $52.06 $75.87 67
DDM Multi-Stage $27.14 $45.97 $55.22 67
All 6 models by family
Dividend Discount
Gordon GGM $27.14 $52.06 $75.87 67
DDM Multi-Stage $27.14 $45.97 $55.22 67
Multiples
P/E Multiple $109.92 $146.56 $183.20 63
P/B Multiple $69.94 $93.25 $116.56 55
Asset-Based
NCAV (Graham) $33.30 $44.63 $66.61 54
Economic Profit
Residual Income $69.03 $91.65 $145.79 74

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Quality Score breakdown

Overall quality 67/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 40
How much profit the company makes from its sales and capital
Quality Growth 50
Are margins and returns getting better?
Cashflow 88
Do the profits arrive as real cash?
Financial strength 35
Debt, balance sheet and risk of trouble
Investment 77
Does it invest with discipline instead of growing at any price?
Low Volatility 88
How calm the share price moves, does not count
Price momentum 50
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 66
Distance to the 52-week high, does not count
New shares 100
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 94/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
−4.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+18.3%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.8%
Start year 2020 (pandemic). Over 10 years: +17.5% a year
Revenue growth 23 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.8%
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+18.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+14.9%
Dividend (yield on the price)3.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.14.9% vs 17.0%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.44% → 38%
Pace: the 5-year rate starts in 2020 (pandemic)

PFBC screens overvalued: fair value 11% below the price. Compare with China Merchants Bank Co →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Banks - Regional · 998 stocks

Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 67 · Top 25%
Fair Value upside −10.9% · Above median
Profitability
Return on equity (12 months) 16.9% · Top 25%
Return on assets 1.8% · Top 25%
Net margin (12 months) 46.7% · Top 25%
Operating margin (12 months) 68.3% · Top 25%
Growth and dividend
Revenue growth (quarter YoY) −3.8% · Bottom 25%
Dividend yield (12 months) 3.1% · Above median
Balance sheet
Debt / equity 0.44× · Above median

Valuation Multiplesvs Banks - Regional median · lower = cheaper

P/E (12 months) 9.6× · Cheaper than median
P/B 1.57× · Priciest 25%
P/S (12 months) 4.37× · Priciest 25%
Price / free cash flow (fiscal year) 7.4× · Cheaper than median
EV/EBITDA 4.1× · Cheapest 25%
PEG 0.94× · Cheapest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)19 · sector 8
FUTURE (revenue growth)0 · sector 47
PAST (return on equity)68 · sector 43
HEALTH (low debt)–
DIVIDEND (yield)62 · sector 53

HEALTH: for banks, insurers and similar financial firms borrowed money is part of the business, so we do not rate debt here.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value Compare
Postal Savings Bank of China Co 601658 ¥5.53 ¥7.59 +37% vs PFBC
China Merchants Bank Co 600036 ¥42.88 ¥52.73 +23% vs PFBC
BNP Paribas SA BNP €91.93 €106.01 +15% vs PFBC
Intesa Sanpaolo S.p.A ISP €6.18 €4.49 −27% vs PFBC
State Bank of India SBIN ₹1,019 ₹736.65 −28% vs PFBC
UniCredit S.p.A UCG €76.80 €50.44 −34% vs PFBC
Mizuho Financial Group MFG $9.40 $5.90 −37% vs PFBC
DBS Group D05 69.72 SGD 40.39 SGD −42% vs PFBC
HDFC Bank Limited HDFCBANK ₹788.25 ₹406.39 −48% vs PFBC
ICICI Bank Limited ICICIBANK ₹1,571 ₹615.63 −61% vs PFBC

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Preferred Bank: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "Preferred Bank Fair Value". https://www.fairvalue-calculator.com/stock/PFBC

Frequently asked questions

Is Preferred Bank (PFBC) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $91.65 versus a price of $102.89, about 11% lower (overvalued).
What is the fair value of PFBC?
Our model-based fair value for Preferred Bank is $91.65 (as of Nov 6, 2026), built from audited fundamentals. The current price: $102.89.
What is the quality score of PFBC?
Preferred Bank has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Preferred Bank (PFBC)?
Our model-based price target is the fair value of $91.65 (as of Nov 6, 2026) from 6 valuation models. Cautious scenario $69.03, optimistic scenario $145.79. It is a calculation from audited fundamentals, not an analyst target.
What is the Preferred Bank stock forecast for 2026?
Our models put fair value at $91.65, about 11% lower versus a price of $102.89 (overvalued). Cautious scenario $69.03, optimistic scenario $145.79. The calculation is refreshed regularly with new filings.
What is the revenue of Preferred Bank (PFBC)?
Preferred Bank reported trailing-twelve-month revenue of about $284M (latest available figure, as of Nov 6, 2026).
Does Preferred Bank pay a dividend?
Preferred Bank currently shows a dividend yield of 3.11% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Preferred Bank (PFBC) and when is the ex-dividend date?
Preferred Bank pays a dividend of $3.20 per share a year, a dividend yield of 3.1%. The last ex-dividend date was Oct 5, 2026. A dividend has been paid every year since 2014. The payout ratio is 29.9% of earnings. Our assessment: Low payout. A low payout ratio: the dividend takes at most 60 % of earnings. Whether free cash flow covers it as well, we cannot see for this company.
What is the intrinsic value of Preferred Bank (PFBC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Preferred Bank it is $91.65 per share (as of Nov 6, 2026), against a price of $102.89. It is the blended result of 6 valuation models in 4 families (Dividend Discount, Multiples, Asset-Based, Economic Profit).
Is Preferred Bank stock overvalued or undervalued in 2026?
As of Nov 6, 2026, PFBC trades above its calculated fair value: price $102.89, fair value $91.65, a gap of about −11% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of PFBC?
No. The price is what the market pays today ($102.89); the fair value is what the company's own numbers justify ($91.65). For Preferred Bank the two are $11.24 per share apart. That gap is exactly why we show both numbers side by side.
How much is Preferred Bank worth?
The market values Preferred Bank at about $1.2B (market capitalisation, as of Nov 6, 2026). Per share that is $102.89; our models calculate a fair value of $91.65 per share.
What do the bullish and bearish scenarios say about PFBC?
Our models span a range for Preferred Bank: cautious scenario $69.03, base $91.65, optimistic $145.79 per share (as of Nov 6, 2026, price $102.89). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PFBC?
Preferred Bank trades at a price-to-earnings ratio of 9.6 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $91.65 is built from several models across several years. Other multiples: PEG 0.9, P/B 1.6, P/S 4.4, EV/EBITDA 4.1.
What is the PEG ratio of PFBC?
The PEG ratio of Preferred Bank is 0.94 (P/E divided by earnings growth, as of Nov 6, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Preferred Bank (PFBC)?
Balance-sheet figures for Preferred Bank (as of Nov 6, 2026): return on equity 16.9%, debt of 0.44 per unit of equity. They feed the Quality Score of 67/100, which measures business quality independently of the share price.
How far is PFBC from its 52-week high?
Preferred Bank trades at $102.89, about 5% below its 52-week high of $108.66 and 27% above the low of $80.78 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $91.65 is for.
Which stocks are comparable to Preferred Bank?
From the same area (Financial Services) we also value China Merchants Bank Co, DBS Group, UniCredit S.p.A, Mizuho Financial Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Preferred Bank stock attractive at the current price?
The data as of Nov 6, 2026: price $102.89, calculated fair value $91.65 (−11%), Quality Score 67/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of PFBC calculated?
We run Preferred Bank through 6 models from 4 families: Dividend Discount, Multiples, Asset-Based, Economic Profit. Every model gets the same audited fundamentals; the fair value of $91.65 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Preferred Bank itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Preferred Bank (PFBC)?
The closing price on Nov 6, 2026 was $102.89. Our model-based fair value is $91.65, about 11% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Preferred Bank right now?
A fairly wide model range ($69.03 to $145.79) leaves room in how you read the outcome. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Preferred Bank (PFBC) come from?
Earnings per share at Preferred Bank grew +18.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share +19.3 %, EBIT margin −2.4 %, tax rate +1.9 %, residual (interest, one-offs) +0.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of Preferred Bank

How large is the market capitalisation of Preferred Bank (PFBC)?
The market capitalisation of Preferred Bank is $1.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Preferred Bank (PFBC)?
The price-to-sales ratio of Preferred Bank is 4.37 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Preferred Bank (PFBC)?
Earnings per share at Preferred Bank are $10.72 (price ÷ EPS = P/E 9.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Preferred Bank (PFBC)?
The dividend yield of Preferred Bank is 3.1% (payout 29.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Preferred Bank (PFBC)?
The net margin of Preferred Bank is 46.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Preferred Bank (PFBC)?
The return on equity (ROE) of Preferred Bank is 16.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Preferred Bank (PFBC)?
On an EBIT basis the return on assets of Preferred Bank is 2.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Preferred Bank (PFBC)?
The operating margin of Preferred Bank is 68.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Preferred Bank (PFBC)?
Revenue at Preferred Bank is growing −3.8% versus a year earlier (3y avg +18.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Preferred Bank (PFBC)?
Earnings per share at Preferred Bank are growing −3.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Preferred Bank (PFBC) generate?
The free cash flow of Preferred Bank is $167M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net cash does Preferred Bank (PFBC) hold?
Preferred Bank holds more cash than debt, $423M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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