Evaluating United Community Banks (UCB) Valuation As Shares Trade Below Estimated Fair Value

Without a specific news headline driving attention today, United Community Banks (UCB) still offers plenty for investors to examine, from its recent share performance to its current earnings profile as a regional lender.

See our latest analysis for United Community Banks.

At a recent share price of US$33.86, United Community Banks has seen a 4.31% 1 month share price return and a 13.02% 3 month share price return. Its 1 year total shareholder return sits at 7.25% and its 5 year total shareholder return at 23.83%, suggesting momentum has been picking up in the shorter term compared with its longer term record.

If you are comparing UCB with other financial names, this can be a good moment to see how it stacks up against solid balance sheet and fundamentals stocks screener (None results) as potential banking peers with stronger balance sheets and fundamentals.

With UCB trading at US$33.86 and sitting at an estimated 42% discount to an intrinsic value model and around 10% below one analyst target, the key question is whether this gap signals opportunity or if the market is already pricing in future growth.

Most Popular Narrative: 5.9% Undervalued

The most followed narrative sets a fair value of US$36.00 per share for United Community Banks, slightly above the recent US$33.86 close and grounded in detailed earnings projections.

Analysts expect earnings to reach $442.5 million (and earnings per share of $3.6) by about September 2028, up from $265.4 million today. The analysts are largely in agreement about this estimate.

Read the complete narrative.

Curious what kind of revenue path and profit margins would be needed to support those earnings and that valuation, especially with a higher future earnings multiple assumed?

Result: Fair Value of $36 (UNDERVALUED)

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

However, this depends on UCB managing deposit competition and credit quality. Higher funding costs or weaker commercial real estate performance could quickly challenge the current valuation story.

Find out about the key risks to this United Community Banks narrative.

Build Your Own United Community Banks Narrative

If you look at these figures and come to a different conclusion, or simply prefer to test your own assumptions against the data, you can build a complete view in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding United Community Banks.

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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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