A Look At Stifel Financial (SF) Valuation After Recent Share Price Swings

Stifel Financial (SF) is back on investors’ radar after recent share price moves, with the stock showing mixed returns over the past month and past 3 months alongside double digit 1 year and multi year total returns.

See our latest analysis for Stifel Financial.

With the share price at US$119.91, Stifel Financial’s recent 6.5% decline in the 1 month share price return contrasts with its stronger 1 year and multi year total shareholder returns. This suggests earlier optimism is now being reassessed.

If this shift in sentiment has you looking beyond one stock, it could be a good moment to scan the market for other ideas using our 22 top founder-led companies.

With the shares trading at US$119.91, annual revenue of US$5.53b and net income of US$646.50m, plus a discount to the average analyst price target, you have to ask: is this a buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 14.8% Undervalued

At $119.91 versus a narrative fair value of $140.75, Stifel Financial is framed as undervalued, with that view built on detailed growth and margin assumptions.

The firm’s strong pipelines in financial advisory and institutional banking, particularly in sectors like technology, industrial services, and a growing appetite for bank M&A, suggest potential for increased investment banking revenue as market conditions stabilize.

Stifel's strategic flexibility to prioritize share repurchases over loan growth reflects an opportunity to enhance earnings per share (EPS) and returns on investment, given current market conditions and undervalued stock prices.

Read the complete narrative.

Want to see what powers that $140.75 fair value? The narrative leans on faster earnings, steadier revenue and a slimmer profit margin, all feeding into a tighter valuation multiple.

Result: Fair Value of $140.75 (UNDERVALUED)

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

However, there is still the risk that prolonged market volatility and ongoing legal costs could pressure margins and make those wealth and banking growth assumptions appear ambitious.

Find out about the key risks to this Stifel Financial narrative.

Another Angle On The Valuation

On plain P/E, Stifel Financial sits at 18.9x, a touch above its own fair ratio of 18.3x, yet below both the US Capital Markets industry at 23.5x and a 19.4x peer average. Is the slight premium to its fair ratio a warning sign, or simply the cost of a stronger relative position?

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If the mixed signals here leave you unsure, it makes sense to move quickly, weigh the upside and pressure points, and review the 2 key rewards before deciding.

Looking for more investment ideas?

If you like what you see with Stifel Financial but want options, cast a wider net now so you are not kicking yourself later.

• Target quality at a discount by scanning our 54 high quality undervalued stocks that combine solid fundamentals with prices that may not fully reflect their strengths yet.
• Prioritize resilience by checking companies in our 87 resilient stocks with low risk scores that score well on balance sheet strength and overall risk profiles.
• Hunt for potential future leaders using the screener containing 23 high quality undiscovered gems and see which underfollowed names stand out on fundamentals before the crowd pays attention.

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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