Latest Ratios: P/E Ratio 10.2x · EV/EBITDA 4.3x · ROE 17.2%. (2004–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.3B | $1.2B | $1.2B | $1.0B | $1.1B | $1.1B | $751M | $905M | $653M | $852M | $733M |
| Enterprise Value | $830M | $789M | $571M | $319M | $526M | $207M | $130M | $526M | $226M | $510M | $557M |
| P/E Ratio → | 10.16 | 9.07 | 8.95 | 6.94 | 8.58 | 11.20 | 10.85 | 11.65 | 9.34 | 19.86 | 20.48 |
| P/S Ratio | 4.42 | 4.28 | 4.12 | 3.55 | 4.34 | 5.51 | 4.17 | 5.30 | 4.00 | 6.31 | 6.74 |
| P/B Ratio | 1.72 | 1.54 | 1.53 | 1.50 | 1.75 | 1.82 | 1.43 | 1.93 | 1.57 | 2.40 | 2.46 |
| P/FCF | 7.51 | 7.27 | 7.16 | 6.02 | 7.71 | 8.97 | 7.35 | 11.22 | 6.78 | 16.44 | 14.10 |
| P/OCF | 7.45 | 7.21 | 7.12 | 5.94 | 7.69 | 8.92 | 7.24 | 10.43 | 6.59 | 16.02 | 13.93 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.78 | 2.01 | 1.09 | 2.07 | 1.07 | 0.72 | 3.08 | 1.39 | 3.78 | 5.12 |
| EV / EBITDA | 4.34 | 4.12 | 3.07 | 1.50 | 2.91 | 1.53 | 1.31 | 4.67 | 2.27 | 6.27 | 9.18 |
| EV / EBIT | 4.38 | 4.16 | 3.10 | 1.52 | 2.94 | 1.55 | 1.34 | 4.72 | 2.29 | 6.34 | 9.32 |
| EV / FCF | — | 4.73 | 3.49 | 1.84 | 3.67 | 1.74 | 1.27 | 6.52 | 2.35 | 9.85 | 10.71 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 96.8% | 96.8% | 95.7% | 96.6% | 97.1% | 100.5% | 85.6% | 98.0% | 93.8% | 95.9% | 94.1% |
| Operating Margin | 66.9% | 66.9% | 64.8% | 71.9% | 70.4% | 69.1% | 53.7% | 65.2% | 60.5% | 59.6% | 54.9% |
| Net Profit Margin | 47.2% | 47.2% | 46.0% | 51.2% | 50.6% | 49.2% | 38.5% | 45.9% | 43.5% | 32.2% | 33.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 17.2% | 17.2% | 17.9% | 22.6% | 21.2% | 17.1% | 14.0% | 17.7% | 18.4% | 13.3% | 12.9% |
| ROA | 1.8% | 1.8% | 1.9% | 2.3% | 2.1% | 1.7% | 1.4% | 1.8% | 1.8% | 1.2% | 1.2% |
| ROIC | 13.5% | 13.5% | 15.4% | 19.0% | 17.3% | 14.3% | 11.8% | 15.1% | 15.1% | 13.6% | 12.5% |
| ROCE | 4.4% | 4.4% | 19.1% | 23.4% | 21.3% | 17.6% | 14.4% | 18.4% | 18.4% | 16.9% | 15.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.49 | 0.49 | 0.22 | 0.24 | 0.27 | 0.29 | 0.22 | 0.25 | 0.24 | 0.30 | 0.44 |
| Debt / EBITDA | 2.01 | 2.01 | 0.89 | 0.79 | 0.93 | 1.26 | 1.19 | 1.06 | 1.01 | 1.29 | 2.14 |
| Net Debt / Equity | — | -0.54 | -0.79 | -1.04 | -0.92 | -1.47 | -1.18 | -0.81 | -1.02 | -0.96 | -0.59 |
| Net Debt / EBITDA | -2.21 | -2.21 | -3.22 | -3.40 | -3.20 | -6.34 | -6.29 | -3.36 | -4.28 | -4.19 | -2.91 |
| Debt / FCF | — | -2.54 | -3.67 | -4.18 | -4.03 | -7.22 | -6.08 | -4.70 | -4.43 | -6.59 | -3.40 |
| Interest Coverage | 0.88 | 0.88 | 0.78 | 1.11 | 3.81 | 5.32 | 2.41 | 1.79 | 2.41 | 2.89 | 3.19 |
Net cash position: cash ($807M) exceeds total debt ($384M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 149.60 | 149.60 | 0.14 | 0.22 | 0.22 | 0.29 | 0.23 | 0.19 | 0.20 | 0.20 | 0.19 |
| Quick Ratio | 149.60 | 149.60 | 0.14 | 0.22 | 0.22 | 0.29 | 0.23 | 0.19 | 0.20 | 0.20 | 0.19 |
| Cash Ratio | 140.19 | 140.19 | 0.13 | 0.16 | 0.13 | 0.20 | 0.17 | 0.13 | 0.14 | 0.14 | 0.11 |
| Asset Turnover | — | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.8% | 3.2% | 3.2% | 3.0% | 2.3% | 2.0% | 2.4% | 2.0% | 2.4% | 1.3% | 1.2% |
| Payout Ratio | 28.6% | 28.6% | 28.7% | 20.8% | 19.5% | 22.5% | 25.8% | 23.3% | 22.0% | 25.4% | 23.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.8% | 11.0% | 11.2% | 14.4% | 11.7% | 8.9% | 9.2% | 8.6% | 10.7% | 5.0% | 4.9% |
| FCF Yield | 13.3% | 13.8% | 14.0% | 16.6% | 13.0% | 11.2% | 13.6% | 8.9% | 14.7% | 6.1% | 7.1% |
| Buyback Yield | 7.4% | 7.7% | 3.3% | 5.3% | 3.0% | 1.7% | 0.3% | 2.3% | 0.2% | 1.7% | 0.0% |
| Total Shareholder Yield | 10.2% | 10.8% | 6.5% | 8.3% | 5.3% | 3.7% | 2.7% | 4.3% | 2.6% | 3.0% | 1.2% |
| Shares Outstanding | — | $13M | $14M | $14M | $15M | $15M | $15M | $15M | $15M | $14M | $14M |
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying PFBC stock.
Preferred Bank's current P/E ratio is 10.2x. The historical average is 12.4x. This places it at the 37th percentile of its historical range.
Preferred Bank's current EV/EBITDA is 4.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.7x.
Preferred Bank's return on equity (ROE) is 17.2%. The historical average is 9.5%.
Based on historical data, Preferred Bank is trading at a P/E of 10.2x. This is at the 37th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Preferred Bank's current dividend yield is 2.82% with a payout ratio of 28.6%.
Preferred Bank has 96.8% gross margin and 66.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Preferred Bank's Debt/EBITDA ratio is 2.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
High CRE concentration and deployment challenges
Premium Valuation for Niche Franchise
At a P/B of 1.67 and a P/TBV of 1.67, Preferred Bank trades at a notable premium to most peers, with the market appearing to price in its superior profitability and niche deposit franchise despite a compressed NIM of 0.9% as reported in recent filings.
The valuation premium is justified by PFBC's superior ROE relative to most peers except EWBC, and its highly efficient operating model. The P/B multiple implies the market expects the bank to sustain its current level of returns on tangible equity, which are constrained by the 0.9% NIM. The lack of a reported P/E in the peer table suggests the market is focused on balance sheet-based valuation, which is appropriate given the asset-sensitive earnings profile.
ROE Constrained by Margin Compression
PFBC's ROE has stabilized at approximately 4.0-4.4% over the past year, a significant decline from the 4.8% seen in early 2024, indicating that the higher-rate environment has compressed net interest income generation despite maintaining a lean cost structure.
DuPont analysis reveals the core profitability challenge: the NIM has compressed from 1.0% to 0.9%, directly impacting the bank's primary earnings engine. This margin pressure appears to be the primary driver of the ROE decline, offsetting the benefits of a very low efficiency ratio and conservative leverage. The bank's return profile suggests it is in a transitional phase, seeking to stabilize its core spread in a challenging deposit cost environment.
Efficient but Margin-Compressed Operations
The bank maintains an exceptionally low efficiency ratio, ranging from 28.0% to 36.9% over ten quarters, demonstrating disciplined cost control, but this operational strength is currently overshadowed by a net interest margin that has settled at 0.9%, down from 1.0% a year ago.
The efficiency ratio's quarterly volatility, swinging from 28.0% to 35.1% and back, suggests that non-interest expense can be lumpy, possibly related to compensation or regulatory costs. However, the sustained low level indicates a fundamentally lean operating model. The key investor focus should be on whether the bank can leverage this efficiency to protect earnings as the NIM remains compressed, or if fee income, currently at 4.5% of revenue, can provide a more meaningful offset.
Conservative Leverage Limits Upside
With an equity-to-assets ratio consistently at 10% and a debt-to-equity ratio of just 0.49%, Preferred Bank operates with one of the most conservative balance sheets among peers, suggesting significant capacity for capital return but also constraining potential ROE expansion.
The ultra-conservative leverage profile limits the bank's ability to amplify returns on equity, which is a key component of the DuPont decomposition. This stance appears to be a deliberate management choice, favoring balance sheet strength over aggressive growth. While this provides a strong defensive cushion, it also means the bank's ROE is more directly tied to its underlying asset yields and funding costs rather than leverage-driven amplification.
Outperforming Smaller Peers, Lagging EWBC
Preferred Bank's profitability metrics, including its ROE and net margin, position it between the stronger East West Bancorp and weaker peers like Hope Bancorp, suggesting its niche focus delivers superior returns compared to smaller, less-specialized institutions.
Compared to EWBC, PFBC lags on scale and margin, likely due to differences in deposit mix and loan portfolio composition. However, it clearly outperforms peers like HOPE and RBB on efficiency and returns, indicating its operational model is more effective. The valuation premium over most peers, except EWBC, appears warranted by this middle-ground positioning—better than the average small-cap bank, but with a more concentrated risk profile than the large-cap leader.
The Peril of the Static P/B Multiple
The P/B ratio of 1.67, commonly applied to assess bank valuations, may be misleadingly stable and high for PFBC because it does not fully account for the substantial unrealized losses lurking within its $6.8 billion securities portfolio, which could erode tangible book value if realized.
The static P/B multiple treats tangible book value as a fixed, realizable figure. For PFBC, with 88% of assets in securities, a significant portion of that book value is likely comprised of amortized cost less unrealized losses from the rate-hiking cycle. A stress scenario involving forced liquidation or prolonged elevated rates could impair the tangible equity base, making the current P/B appear artificially low on a risk-adjusted basis. Investors should instead monitor the ratio of unrealized losses to total equity and consider an adjusted tangible book value that stresses the securities portfolio.