Texas Capital Bancshares (TCBI) released third quarter results showing a swing to net income from last year’s loss, with double-digit net interest income growth. Management reaffirmed its annual revenue outlook, which signals ongoing confidence.
See our latest analysis for Texas Capital Bancshares.
After a year of steady progress, Texas Capital Bancshares has kept momentum moving forward, with a share price now at $85.31 and a 1-year total shareholder return of 12.3%. Standout financials, management’s upbeat guidance, and recent share repurchases have helped reinforce investor confidence. News of a preferred dividend also supports the company’s growth narrative and durability.
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With shares trading near analysts’ targets and robust financial growth just delivered, the key question becomes whether Texas Capital Bancshares is still undervalued or if the market has already priced in expectations for future gains.
Texas Capital Bancshares’ most popular valuation narrative suggests shares have further room to run, with fair value estimated at $92 and the latest close at $85.31. The market appears skeptical, yet the consensus view implies catalysts ahead that could narrow this gap.
Significant investments in digital platforms, including treasury and wealth management services, are delivering operational efficiencies and enhanced client connectivity. These are expected to lower non-interest expenses and support improved net margins over time.
What is powering this bullish outlook? It is not just top-line growth or quick efficiency gains. The real surprise comes from bold assumptions about profit margins doubling and a future profit multiple lower than industry norms. Want to see the story behind this playbook? The next move may change how you view Texas Capital’s upside potential.
Result: Fair Value of $92 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, sustained growth is not guaranteed. Slowing loan demand or heavier compliance costs could significantly impact Texas Capital Bancshares’ earning power and outlook.
Find out about the key risks to this Texas Capital Bancshares narrative.
Looking from a different angle, Texas Capital Bancshares trades at a price-to-earnings ratio of 13.7x. This is higher than both the US Banks industry average of 11x and its own fair ratio of 11.9x. This suggests the market is asking a premium relative to its peers. Could this be justified or is there a risk of underperformance if sentiment shifts?
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqGS:TCBI PE Ratio as at Nov 2025
If you see things differently or want to dig deeper into the numbers, you can craft your own narrative in just a few minutes. Go ahead and Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Texas Capital Bancshares.
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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.
Companies discussed in this article include TCBI.
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