WaFd (WAFD) Stock Still Looks Below Fair Value Following Its 35% Run

WaFd has delivered a 35.0% return over the past three years, and the key issue now is whether that kind of payoff lines up with the returns the bank earns on its own capital. With the stock recently closing at US$29.47, investors are weighing a busy run of news against the harder question of what the current price assumes about WaFd's ability to keep putting shareholder capital to work efficiently.

• A 35.0% gain over three years raises the question of whether WaFd's current earnings power on its capital base can justify where the shares trade today.
• Recent results and the planned merger with EverBank suggest management is focused on scaling the balance sheet and managing credit costs, which can influence how much value each dollar of equity capital produces over time.
• If you'd rather focus on earnings, this one's for you. See what WaFd's 9.0x P/E says about the price.

The issue now is whether the returns WaFd earns on its capital are strong and durable enough to support the share price investors see today.

If you want more ideas built around balance sheet scale and return on capital, consider using a focused screener such as solid balance sheet and fundamentals stocks screener (24 results).

Is WaFd Still Cheap on Excess Returns?

The Excess Returns model looks at how much profit WaFd can earn over its equity cost and then grows that value over time. On the current inputs, WaFd is modeled with Book Value of $36.48 per share and Stable EPS of $2.98 per share, based on the median return on equity from the past 5 years. The Cost of Equity is set at $3.11 per share, which leaves a small excess return of $0.13 per share in the model, and an Average Return on Equity of 7.64%.

Stable Book Value is projected at $38.95 per share, using weighted future Book Value estimates from 2 analysts. This supports a steady, rather than explosive, excess return profile. Because the Excess Returns projections put WaFd's estimated intrinsic value meaningfully above the current share price of $29.47, the model implies the market is not fully crediting those equity returns today. WaFd's recent report of robust fiscal 2026 earnings and the planned EverBank merger helps explain why the valuation model sees more value in the bank's capital base than the share price currently reflects. Find out what WaFd could be worth using our Excess Returns estimate.

The WaFd Narrative: What Would Justify Today's Price?

Simply Wall St Narratives pick up where the WaFd valuation puzzle leaves off by spelling out which assumptions on growth, margins and earnings would need to hold for the shares to be worth materially more or less than today, and they sit on the stock's Community page. Each narrative links a specific fair value estimate to a clear story about WaFd's potential catalysts and risks so you can track over time which version of events is actually unfolding.

One of the top community narratives on WaFd: 7% undervalued

"The Build 2030 shift toward true commercial banking and small business relationships positions WaFd to grow higher yielding C&I and CRE loans..."

Discover why this Narrative puts WaFd at 7% undervalued.

One more WaFd angle worth checking before you move on

Everything about WaFd's returns on capital ultimately flows from the people steering the bank, how long they tend to stay in their roles, and what they are actually rewarded for delivering. See who runs WaFd and how they are paid.

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