Webster Financial Corporation (WBS) fair value: what the stock is really worth
We calculate from audited financials what Webster Financial Corporation is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 13, 2026.
How to read this chart
60‑month range $1.00 – $79.07 · fair‑value band $1.50 – $2.50 · the $1.00 price screens below the $2.00 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 13, 2026.
Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides various financial products and services to businesses, individuals, and families in the United States. It operates through three segments: Commercial Banking, Healthcare Financial Services, and Consumer Banking.
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Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides various financial products and services to businesses, individuals, and families in the United States. It operates through three segments: Commercial Banking, Healthcare Financial Services, and Consumer Banking. The company offers checking, savings, and money market accounts; time deposits; individual retirement account retirement savings; certificates of deposit; mortgages; home equity loans and lines of credit; business lines of credit; overdrafts; and term, commercial mortgages, student, PPA, SBA, and personal loans. It also provides commercial lending; financial planning, life and long-term insurance, personal retirement, and portfolio management solutions; employee retirement plans; credit cards; payroll services; automated clearing house payables and wires; bill pay, remote deposit capture, merchant, and lockbox services; treasury management and investment services; private banking services; wealth management services; and online and mobile banking services. Webster Financial Corporation was founded in 1870 and is headquartered in Stamford, Connecticut.
Stock analysis
Webster Financial Corporation (WBS) currently trades at $1.00, while our model-based Fair Value estimate is $2.00, implying the stock looks roughly 50.0% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $1.06 per share, and 2 of the 4 models we run sit above the $1.00 price.
Bear case: the Asset-Based group reads lowest at $0.5200, and 2 of the 4 models stay below the price. Evidence for this calculation is high.
Scenario range: $1.50 (bear) to $2.50 (bull), the price of $1.00 sits below 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 64/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Webster Financial Corporation reported revenue of $4.4B in FY2025 versus $1.3B in FY2021, a compound +36.7%/yr. Reported net income was $1.0B in FY2025, compounding +25.1%/yr from FY2021.
Key figures
Market cap $12.3B · P/E ratio 12.5 · P/S ratio 2.83 · EPS (TTM) $6.10 · Dividend yield 2.2% · Net margin 22.7% · Return on equity 10.9% · Return on assets (EBIT) 1.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
For context, the median of 10 Financial Services peers we cover trades at −33% fair-value upside, at 100%, WBS screens cheaper than that median.
Fair Value models
Bear $1.50Fair Value $2.00Bull $2.50
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 8 months old). Earnings retained since then ($3.17 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.Evidence ⓘEvidence = 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.
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.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+6.1%
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.
+17.6%
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.
+28.0%
Revenue growth 36 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.
+12.2%
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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. Basis: EBIT basis.
+10.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.2%
Dividend (yield on the price)2.2%
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.8% vs 11%, 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.22% → 29%
News mood ⓘNews mood, the average tone of recent news (96 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Compare Webster Financial Corporation with another stock
Price, fair value, quality and upside side by side.
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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 · 1077 stocks
Beats the industry median on 8/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score63 · Top 25%
Fair Value upside−14% · Above median
Profitability
Return on equity (TTM)11% · Above median
Return on assets1% · Above median
Net margin (TTM)37% · Top 25%
Operating margin (TTM)49% · Above median
Growth and dividend
Revenue growth9% · Below median
Dividend yield (TTM)2.2% · Below median
Balance sheet
Debt / equity0.08× · Lowest 25%
Valuation Multiplesvs Banks - Regional median · lower = cheaper
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Is Webster Financial Corporation (WBS) overvalued or undervalued?
As of Sep 13, 2026, our model estimates a fair value of $2.00 versus the last price from Aug 21, 2026 of $1.00, about +100% upside (undervalued).
What is the fair value of WBS?
Our model-based fair value for Webster Financial Corporation is $2.00 (as of Sep 13, 2026), built from audited fundamentals. Last price (from Aug 21, 2026): $1.00.
What is the quality score of WBS?
Webster Financial Corporation has a Quality Score of 64/100. 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 Webster Financial Corporation (WBS)?
Our model-based price target is the fair value of $2.00 (as of Sep 13, 2026) from 4 valuation models. Cautious scenario $1.50, optimistic scenario $2.50. It is a calculation from audited fundamentals, not an analyst target.
What is the Webster Financial Corporation stock forecast for 2026?
Our models put fair value at $2.00, about +100% upside versus the last price from Aug 21, 2026 of $1.00 (undervalued). Cautious scenario $1.50, optimistic scenario $2.50. The calculation is refreshed regularly with new filings.
What is the revenue of Webster Financial Corporation (WBS)?
Webster Financial Corporation reported trailing-twelve-month revenue of about $2.7B (latest available figure, as of Sep 13, 2026).
Does Webster Financial Corporation pay a dividend?
Webster Financial Corporation currently shows a dividend yield of about 2.19% relative to its recent price (as of Sep 13, 2026).
What is the intrinsic value of Webster Financial Corporation (WBS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Webster Financial Corporation it is $2.00 per share (as of Sep 13, 2026), against a price of $1.00. It is the blended result of 4 valuation models (cash flow, earnings, asset, dividend).
Is Webster Financial Corporation stock overvalued or undervalued in 2026?
As of Sep 13, 2026, WBS trades below its calculated fair value: price $1.00, fair value $2.00, a gap of about +100% (undervalued). 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 WBS?
No. The price is what the market pays today ($1.00); the fair value is what the company's own numbers justify ($2.00). For Webster Financial Corporation the two are $1.00 per share apart. That gap is exactly why we show both numbers side by side.
How much is Webster Financial Corporation worth?
The market values Webster Financial Corporation at about $12.3B (market capitalisation, as of Sep 13, 2026). Per share that is $1.00; our models calculate a fair value of $2.00 per share.
What do the bullish and bearish scenarios say about WBS?
Our models span a range for Webster Financial Corporation: cautious scenario $1.50, base $2.00, optimistic $2.50 per share (as of Sep 13, 2026, price $1.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of WBS?
Webster Financial Corporation trades at a price-to-earnings ratio of 12.5 (as of Sep 13, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $2.00 is built from several models across several years. Other multiples: PEG 1.7, P/B 1.3, P/S 4.5, EV/EBITDA 8.4.
What is the PEG ratio of WBS?
The PEG ratio of Webster Financial Corporation is 1.73 (P/E divided by earnings growth, as of Sep 13, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Webster Financial Corporation (WBS)?
Balance-sheet figures for Webster Financial Corporation (as of Sep 13, 2026): return on equity 10.9%, debt of 0.08 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
Which stocks are comparable to Webster Financial Corporation?
From the same area (Financial Services) we also value DBS Group, China Merchants Bank Co, Intesa Sanpaolo S.p.A, HDFC Bank Limited, 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 Webster Financial Corporation stock attractive at the current price?
The data as of Sep 13, 2026: price $1.00, calculated fair value $2.00 (+100%), Quality Score 64/100, from 4 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 WBS calculated?
We run Webster Financial Corporation through 4 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $2.00, 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 15.8 % above its aggregate fair value. Webster Financial Corporation currently trades 100 % below its own fair value, and the market average says nothing about that. 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 should I pay attention to with Webster Financial Corporation right now?
The price is below even our cautious bear case ($1.50). The market is more pessimistic than our downside scenario. Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality. 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 Webster Financial Corporation (WBS) come from?
Earnings per share at Webster Financial Corporation grew +9.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.5 %, EBIT margin −1.1 %, tax rate +1.5 %, 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 Webster Financial Corporation
How large is the market capitalisation of Webster Financial Corporation (WBS)?
The market capitalisation of Webster Financial Corporation is $12.3B. 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 Webster Financial Corporation (WBS)?
The price-to-sales ratio of Webster Financial Corporation is 2.83 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Webster Financial Corporation (WBS)?
Earnings per share at Webster Financial Corporation are $6.10 (price ÷ EPS = P/E 12.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Webster Financial Corporation (WBS)?
The dividend yield of Webster Financial Corporation is 2.2% (payout 0.4%). 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 Webster Financial Corporation (WBS)?
The net margin of Webster Financial Corporation is 22.7% (fiscal year 2025). 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 Webster Financial Corporation (WBS)?
The return on equity (ROE) of Webster Financial Corporation is 10.9% (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 Webster Financial Corporation (WBS)?
On an EBIT basis the return on assets of Webster Financial Corporation is 1.4% (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 Webster Financial Corporation (WBS)?
The operating margin of Webster Financial Corporation is 49.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Webster Financial Corporation (WBS)?
Revenue at Webster Financial Corporation is growing +8.7% versus a year earlier (3y avg +17.6%). 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 Webster Financial Corporation (WBS)?
Earnings per share at Webster Financial Corporation are growing +15.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Webster Financial Corporation (WBS) generate?
The free cash flow of Webster Financial Corporation is $1.0B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Webster Financial Corporation (WBS) carry?
The net debt of Webster Financial Corporation is $1.9B (fiscal year 2025, ≈ 1.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Sep 13, 2026