Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.
Without a single headline event driving attention today, Texas Capital Bancshares (TCBI) is drawing interest after a mix of recent returns, including a 1 day decline, a small 7 day slip, and gains over the month and past 3 months.
See our latest analysis for Texas Capital Bancshares.
Texas Capital Bancshares’ 1 day share price decline of 5.08% comes after a period of stronger share price momentum, with a 30 day share price return of 3.46% and a 90 day share price return of 15.70%. Longer term total shareholder returns over 1, 3 and 5 years indicate that most of the value for investors has come from staying invested rather than short term trading.
If today’s move has you thinking about where else returns could come from, it may be a good moment to look at solid balance sheet and fundamentals stocks screener (None results) as another way to spot bank stocks with support from stronger fundamentals.
With Texas Capital Bancshares trading at US$97.05, a 5.6% discount to the average analyst price target and a model-based intrinsic discount of about 36%, you have to ask yourself whether there is a genuine mispricing here or whether the market is already accounting for future growth.
Texas Capital Bancshares’ most followed valuation narrative pegs fair value at about $97.36, almost in line with the last close at $97.05. This raises useful questions about where any margin of safety actually comes from.
The ongoing build-out of fee-based businesses such as investment banking, trading, and treasury products is rapidly growing non-interest income streams, making overall earnings more resilient and scalable.
Want to see what sits behind that resilience claim? The narrative leans heavily on revenue mix, margin expansion, and future earnings power. The exact assumptions might surprise you.
Result: Fair Value of $97.36 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this resilience story could be knocked off course if Texas-focused exposure to the state economy or heavier tech and compliance spending pressures profitability and earnings stability.
Find out about the key risks to this Texas Capital Bancshares narrative.
While the SWS model-based fair value suggests TCBI is trading at roughly a 36% discount, the current P/E of 13.7x sits above the Banks industry at 11.8x, the peer average at 13.6x, and the 12.6x fair ratio. That gap hints at less room for error than the DCF implies. The question is which signal to place more weight on.
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:TCBI P/E Ratio as at Jan 2026
If you see the numbers differently or prefer to lean on your own work, you can pull the same data, stress test the assumptions, and Do it your way in just a few minutes.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Texas Capital Bancshares.
If Texas Capital Bancshares has you thinking more broadly, do not stop here. Widen your search across different themes so you can spot opportunities others might overlook.
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 TCBI.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com