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FB Financial (FBK) is back on investors’ radar after a busy quarter, with earnings above Wall Street expectations, a higher quarterly dividend, and completion of a sizable share repurchase programme.
See our latest analysis for FB Financial.
Despite the strong earnings beat, higher dividend, and share repurchases, the 1 day share price return of a 6.34% decline and the softer 7 day return of a 4.59% decline suggest some of the enthusiasm has cooled, even as the 1 year total shareholder return of 9.48% and 3 year total shareholder return of 62.46% point to a stronger longer term story.
If FB Financial’s recent move has you reassessing your watchlist, it could be a good moment to broaden your search with fast growing stocks with high insider ownership.
With FB Financial trading at US$56.90, sitting at a reported 48.87% intrinsic discount and about 16% below the average analyst price target, you have to ask: is this a genuine value opportunity, or is the market already baking in future growth?
With FB Financial last closing at $56.90 against a narrative fair value of about $65.17, the widely followed view suggests the current price does not fully reflect its forecast cash generation.
The planned combination with Southern States Bank is expected to enhance scale and market opportunities, potentially benefiting revenue growth through expanded market presence and improved margin stabilization. FB Financial’s ability to adjust cost structures, such as repricing certificates of deposit at lower rates, indicates management’s focus on improving net margins by reducing the cost of funds.
Curious what kind of revenue mix, margin shift, and earnings profile would justify that higher value using a discount rate just under 7%? The narrative leans on punchy growth assumptions, a step change in profitability, and a future earnings multiple that looks very different to today. If you want to see how those moving parts connect, the full breakdown spells it out line by line.
Result: Fair Value of $65.17 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, the merger integration with Southern States Bank and pressure on net interest margins could still unsettle the earnings path that underpins this undervaluation story.
Find out about the key risks to this FB Financial narrative.
While the narrative and our cash flow work suggest FB Financial is trading at a discount to fair value, its current P/E of 24x screens as expensive next to the US Banks industry at 11.8x, the peer average at 12.7x, and a fair ratio of 18.9x that the market could pivot toward. For you, that gap can feel like upside if growth plays out cleanly or valuation risk if sentiment cools and the multiple drifts closer to those anchors, so which side of that trade are you really betting on?
See what the numbers say about this price — find out in our valuation breakdown.
NYSE:FBK P/E Ratio as at Jan 2026
If you are not fully convinced by this view or prefer to test the numbers yourself, you can build a custom FB Financial story in just a few minutes, starting with Do it your way.
A great starting point for your FB Financial research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
If FB Financial is already on your radar, do not stop there. Use the Simply Wall St Screener to uncover other opportunities that could sharpen your portfolio.
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.
Companies discussed in this article include FBK.
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