Is Bank of N.T. Butterfield & Son (NTB) Pricing Reflect Its Strong Recent Share Performance?

Simply Wall St.

Jan 10

If you are wondering whether Bank of N.T. Butterfield & Son at around US$50.36 is priced attractively or not, the key question is how that share price stacks up against its underlying value. The stock...

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Butterfield & Son (NTB) Pricing Reflect Its Strong Recent Share Performance?","media":"Simply Wall St.","content":"<div>\n<p>If you are wondering whether Bank of N.T. Butterfield & Son at around US$50.36 is priced attractively or not, the key question is how that share price stacks up against its underlying value. The stock...</p>\n\n<a href=\"https://simplywall.st/stocks/us/banks/nyse-ntb/bank-of-nt-butterfield-son/news/is-bank-of-nt-butterfield-son-ntb-pricing-reflect-its-strong\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Bank of N.T. 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Butterfield & Son (NTB) Pricing Reflect Its Strong Recent Share Performance?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-10 15:16 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/banks/nyse-ntb/bank-of-nt-butterfield-son/news/is-bank-of-nt-butterfield-son-ntb-pricing-reflect-its-strong><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Bank of N.T. Butterfield & Son at around US$50.36 is priced attractively or not, the key question is how that share price stacks up against its underlying value. The stock...</p>\n\n<a href=\"https://simplywall.st/stocks/us/banks/nyse-ntb/bank-of-nt-butterfield-son/news/is-bank-of-nt-butterfield-son-ntb-pricing-reflect-its-strong\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1169589451.USD","symbol_name":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/banks/nyse-ntb/bank-of-nt-butterfield-son/news/is-bank-of-nt-butterfield-son-ntb-pricing-reflect-its-strong","article_id":"2602241581","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7012000-choice2-main-header/1585186732814"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/banks/nyse-ntb/bank-of-nt-butterfield-son/news/is-bank-of-nt-butterfield-son-ntb-pricing-reflect-its-strong","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2602241581","pubTimestamp":1768029371,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Bank of N.T. Butterfield & Son at around US$50.36 is priced attractively or not, the key question is how that share price stacks up against its underlying value.\nThe stock has returned 1.3% over the last 7 days, 0.0% over the past 30 days and 1.3% year to date, while the 1 year and 3 year returns sit at 49.8% and 87.7% respectively. This makes the current level especially interesting for anyone thinking about risk and reward.\nRecent trading interest has been...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","BK4207":"综合性银行","NTB":"毕达菲尔特银行","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC"},"translate_title":"是N.T.银行。Butterfield&Son(NTB)的定价反映了其近期强劲的股价表现？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NTB":1.5},"content_text":"If you are wondering whether Bank of N.T. Butterfield & Son at around US$50.36 is priced attractively or not, the key question is how that share price stacks up against its underlying value. The stock has returned 1.3% over the last 7 days, 0.0% over the past 30 days and 1.3% year to date, while the 1 year and 3 year returns sit at 49.8% and 87.7% respectively. This makes the current level especially interesting for anyone thinking about risk and reward. Recent trading interest has been shaped by ongoing coverage of the bank's position as a key financial institution in its markets, as well as attention on how regional banks are priced more broadly. Together, these themes have kept investors focused on how much of the story may already be reflected in the current share price. On our checks, Bank of N.T. Butterfield & Son scores a 5 out of 6 valuation score. We will break this down using several common approaches before closing with a different way of thinking about valuation that can be even more useful.  Bank of N.T. Butterfield & Son delivered 49.8% returns over the last year. See how this stacks up to the rest of the Banks industry. AdvertisementApproach 1: Bank of N.T. Butterfield & Son Excess Returns Analysis The Excess Returns model looks at how much profit a bank can earn above the return required by its shareholders, then treats that surplus as the source of intrinsic value. For Bank of N.T. Butterfield & Son, the starting point is book value of $27.25 per share and a stable earnings figure of $7.15 per share, based on the median return on equity over the past 5 years. Against a cost of equity of $2.29 per share, this implies an excess return of $4.86 per share, which is the portion of earnings that is above what investors are assumed to require. The model also uses an average return on equity of 21.69% and a stable book value estimate of $32.96 per share, drawn from weighted future book value estimates by 3 analysts. These inputs are combined to arrive at an estimated intrinsic value of $164.38 per share for NYSE:NTB. Compared with the recent share price around $50.36, the Excess Returns model suggests the stock is 69.4% undervalued. Result: UNDERVALUED Our Excess Returns analysis suggests Bank of N.T. Butterfield & Son is undervalued by 69.4%. Track this in your watchlist or portfolio, or discover 879 more undervalued stocks based on cash flows. NTB Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Bank of N.T. Butterfield & Son. Approach 2: Bank of N.T. Butterfield & Son Price vs Earnings For a profitable bank like Bank of N.T. Butterfield & Son, the P/E ratio is a useful way to think about value because it links what you pay directly to the earnings the company is already generating. In simple terms, it tells you how many years of current earnings are built into the share price. What counts as a “normal” or “fair” P/E depends on how the market views a company’s growth prospects and risk. Higher expected growth or lower perceived risk can justify a higher P/E, while lower growth or higher risk usually point to a lower P/E. Right now, Bank of N.T. Butterfield & Son trades on a P/E of 8.97x. That sits below the Banks industry average of 11.88x and also below the peer group average of 14.45x. Simply Wall St’s Fair Ratio for the company is 9.81x, which is its proprietary estimate of what the P/E “should” be after factoring in elements such as earnings profile, industry, profit margins, market cap and key risks. This approach is more tailored than a simple comparison with peers or the sector, because it adjusts for the company’s own characteristics rather than assuming all banks deserve the same multiple. With the current P/E of 8.97x sitting below the 9.81x Fair Ratio, the shares screen as undervalued on this metric. Result: UNDERVALUED NYSE:NTB P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1444 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Bank of N.T. Butterfield & Son Narrative Earlier we mentioned that there is an even better way to think about valuation. On Simply Wall St you can use Narratives, which let you set a clear story for Bank of N.T. Butterfield & Son, link that story to your own revenue, earnings and margin assumptions, turn those into a fair value, and then easily compare that fair value with the current price. The platform keeps your Narrative refreshed when new earnings or news arrive. One investor might focus on global wealth management growth, digital upgrades and fee based income and see fair value near US$51.50. Another might focus on deposit stability, island economy risks and margin pressure and arrive at a meaningfully different figure. Yet both are using the same simple tool on the Community page to decide whether the stock looks more attractive or less attractive to them personally. Do you think there's more to the story for Bank of N.T. Butterfield & Son? Head over to our Community to see what others are saying! NYSE:NTB 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if Bank of N.T. Butterfield &amp; Son might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}