Is M&T Bank Corporation (MTB) overvalued?
On Equity Rank's model estimate, MTB trades close to its fair value (3% above it). M&T Bank Corporation (MTB) last closed at $217.75; the multi-method model fair value is $211.03.
| Price | Model fair value | Price vs model |
|---|---|---|
| $217.75 | $211.03 | 3% above |
What the answer rests on
- 4 of 13 valuation methods put MTB's value above its price and 9 put it below, so the methods disagree.
- To justify today's price, MTB's free cash flow would need to grow about -4.3% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -13.1% a year.
- MTB trades at 11.7 times its last year's earnings, against a median of 12.2 for 253 profitable Banks companies.
- Over the past year the price sat below the model fair value on 81% of trading days. The gap ranged from 17% below to 6% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind MTB's fair value · What prices assume · Other companies