Associated Banc-Corp (ASB)
Valuation Overview•Is Associated Banc-Corp Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Moderate quality score of 62/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
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Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is broadly bullish, projecting solid upside with steady expected earnings growth. This is paired with healthy capital returns, anchored by a strong, well-covered dividend yield.
ASB demonstrates strong business quality with robust profitability and healthy margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company demonstrates solid revenue growth (6.4% 3Y CAGR) paired with stable bottom-line earnings. This growth is supported by elite operational efficiency, sustaining an impressive 39.4% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $464.4M | +44.5% | +6.4% | +3.4% | +4.0% | |
| EBITDA | $446.4M | — | +8.8% | — | — | |
| Net Income | $146.6M | +285.5% | +9.0% | — | +9.7% | |
| EPS (Diluted) | $0.76 | +284.7% | +5.8% | +8.3% | +8.8% | |
| Free Cash Flow | $320.3M | +8.2% | -9.6% | +3.2% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 97.0% | 93.5% | 97.3% | 96.2% |
| Operating Margin | 39.4% | 23.6% | 29.9% | 30.2% |
| Net Margin | 31.2% | 20.2% | 24.7% | 24.3% |
| FCF Margin | 50.5% | 41.9% | 46.9% | 44.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q4'26Latest | $0.77 | $0.81 | +4.7% | ||
| Q3'26 | $0.72 | $0.66 | -8.6% | ||
| Q2'26 | $0.69 | $0.70 | +1.4% | ||
| Q1'26 | $0.69 | $0.80 | +15.9% | ||
| Q4'25 | $0.68 | $0.73 | +7.8% | ||
| Q3'25 | $0.62 | $0.65 | +4.8% | ||
| Q2'25 | $0.58 | $0.59 | +2.3% | ||
| Q1'25 | $0.53 | $0.57 | +7.5% |
Total return is +24.0% (1Y), outperforming the benchmark by +14.3%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +20.7% | +13.0% | — |
| 1Y | +24.0% | +14.3% | +3.8% |
| 3YCAGR | +23.8% | +5.0% | +15.8% |
| 5YCAGR | +8.7% | -0.6% | +19.2% |
| 10YCAGR | +6.5% | -6.6% | — |
The S&P 500 is at 29.9x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Associated Banc-Corp (ASB) valuation, health, and returns.
Associated Banc-Corp is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Slightly cheap versus peers compared to industry peers. trading near fair value (DCF: $29.02)
Associated Banc-Corp has multiple valuation anchors: DCF Intrinsic Value: $29.02 | Peer Relative Fair Value: $33.86 | Wall Street Analyst Target: $34.40 (implying +13.3% upside). A convergence of these signals offers higher conviction.
Associated Banc-Corp displays good financial health with a composite quality score of 62/100, supported by a Piotroski F-Score of 7/9, Return on Invested Capital (ROIC) of 5.1%.
Associated Banc-Corp pays a 3.1% dividend yield, covered by a 33% payout ratio with 14 years of growth, supplemented by a 0.5% buyback yield.
Associated Banc-Corp's current growth trajectory is Accelerating. The company achieved +44.5% 1Y revenue growth and +284.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +6.4%.
Wall Street consensus is Hold based on 20 analysts, beating EPS expectations in 83% of recent quarters with a 1-quarter streak. The consensus price target represents a +13.3% change from current levels.
Investment risks for Associated Banc-Corp include: -17.1% 1-year max drawdown. Volatility risk is characterized by a beta of 0.67x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.