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Preferred Bank
How the company evolved, year by year. Revenue and debt come from the annual reports — for most companies, the 10-K filings with the SEC since 2009; dividends from the payments themselves.
Major managers that reported this stock in their latest 13F.
▲ +56.4% over 5Y.
today you would have $1,893.50▲ +89.4%
Dividends reinvested, splits accounted for. Past prices say what happened, not what will.
Seven formulas applied to what the company reported. None of them predicts a price — each answers what the stock would be worth if its assumption held. The assumption is printed next to every number, because it is the assumption that produces the result.
Square root of 22.5 × earnings × book value — the two ceilings Graham proposed. Blind to intangibles, so it undervalues software and brands.
Earnings growing 0.0% a year plus a 3.0% dividend — Lynch adds the yield to the growth rate, so a payer is not priced like a company that returns nothing. Growth capped at 25%.
Median P/E of 13.2 among peers in the sector.
This formula has no meaning here — usually a loss, negative cash flow, or a missing input.
This formula has no meaning here — usually a loss, negative cash flow, or a missing input.
This formula has no meaning here — usually a loss, negative cash flow, or a missing input.
Companies of similar size in Financial Services, for comparison. The columns are the same ones above, in the same order.
| Stock | Price | P/E | P/B | Dividend yield | ROE | Market cap |
|---|---|---|---|---|---|---|
| OSBCOld Second Bancorp Inc | $24.65 | 14.2x | 1.4x | 1.14% | 11.40% | $1.25B |
| GOLDGold.com, Inc. | $42.85 | 14.2x | 1.4x | 4.20% | 10.80% | $1.25B |
| OPYOppenheimer Holdings Inc | $118.70 | 13.2x | 1.3x | 1.48% | 10.82% | $1.27B |
| WDWalker & Dunlop, Inc. | $36.30 |
Preferred Bank provides various banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals. The company accepts checking, savings, and money market deposit accounts; fixed-rate and fixed maturity retail, and non-retail certificates of deposit; and individual retirement accounts. It also provides real estate mortgage loans that are secured by retail, industrial, office, special purpose, and residential single and multi-family properties; real estate construction loans; commercial loans, including lines of credit for working capital, term loans for capital expenditures, and commercial and stand-by letters of credit; and small business administration loans for business purposes, such as owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing. In addition, the company offers trade finance services, including commercial and export letters of credit, import lines of credit, documentary collections, international wire transfers, acceptances/trust receipt financing, export financing, and bills purchase programs. Further, it provides cash management services; and internet, mobile, and tablet banking services. The company was incorporated in 1991 and is headquartered in Los Angeles, California.
Company description provided by Yahoo Finance.
Dividend growing 1.7% a year against a 7.0% required return, taken from the stock’s beta. The only method anchored on what the company pays rather than what it reports.
Not the average of the seven numbers above. Four of the seven start from the same earnings per share — Graham, Lynch, sector multiples and its own history — so averaging all seven would let one input count four times and drown out the others. Instead each family produces one number, and the fair price is the average of the families that answered. A family with two working formulas contributes their average, not two votes.
4 methods answered, across 2 families.
Every formula reads the same reported statements and they can be wrong together. The margin is room for that.
-26.8% from the average.
These are models, not forecasts, and not investment advice. Change one assumption and the number changes with it — that is a property of valuation, not a defect of this page.
| 32.4x |
| 0.7x |
| 7.49% |
| 2.36% |
| $1.25B |
| ASICAtegrity Specialty Insurance Co Holdings | $26.57 | 12.3x | 1.9x | — | 18.59% | $1.27B |
| HBTHBT Financial, Inc. | $35.90 | 15.3x | 1.7x | 2.79% | 11.55% | $1.31B |