Pinnacle Financial Partners, Inc. (PNFP)
Valuation Overview•Is Pinnacle Financial Partners, Inc. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Moderate quality score of 59/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Average quality business weighed down by significant solvency concerns.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
PNFP demonstrates strong business quality with robust profitability and healthy margins. This is backed by a fortress balance sheet, holding significant net cash ($812M) and minimal debt risk.
The company maintains stable top-line performance however, earnings have severely contracted over the same period. This growth is supported by elite operational efficiency, sustaining an impressive 26.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $544.8M | +15.3% | — | — | +27.6% | |
| EBITDA | $211.1M | — | -1.2% | — | — | |
| Net Income | $173.4M | -15.5% | -3.4% | — | +21.0% | |
| EPS (Diluted) | $2.19 | -16.5% | -4.1% | +2.7% | +11.5% | |
| Free Cash Flow | $442.6M | +101.7% | +8.4% | +15.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 63.1% | 60.3% | 67.6% | 74.9% |
| Operating Margin | 26.9% | 31.4% | 35.8% | 39.6% |
| Net Margin | 22.1% | 25.2% | 29.0% | 29.8% |
| FCF Margin | 39.5% | 26.5% | 32.8% | 31.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $2.30 | $2.39 | +3.9% | ||
| Q1'26 | $2.26 | $2.24 | -0.9% | ||
| Q4'25 | $2.04 | $2.27 | +11.3% | ||
| Q3'25 | $1.92 | $2.00 | +4.2% | ||
| Q2'25 | $1.80 | $1.90 | +5.6% | ||
| Q1'25 | $1.80 | $1.90 | +5.6% | ||
| Q4'24 | $1.77 | $1.86 | +5.1% | ||
| Q3'24 | $1.61 | $1.63 | +1.2% |
Total return is -5.8% (1Y), lagging the benchmark by -30.8%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +2.1% | -7.2% | — |
| 1Y | -5.8% | -30.8% | +1.4% |
| 3YCAGR | +20.1% | +0.3% | +5.7% |
| 5YCAGR | +3.7% | -9.2% | +5.9% |
| 10YCAGR | +7.8% | -5.7% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Pinnacle Financial Partners, Inc. (PNFP) valuation, health, and returns.
Pinnacle Financial Partners, Inc. is estimated to be fair under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. trading near fair value (DCF: $88.74)
Pinnacle Financial Partners, Inc. has multiple valuation anchors: DCF Intrinsic Value: $88.74 | Peer Relative Fair Value: $95.45 | Wall Street Analyst Target: $117.33 (implying +22.1% upside). A convergence of these signals offers higher conviction.
Pinnacle Financial Partners, Inc. displays fair financial health with a composite quality score of 59/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 4.9%.
Pinnacle Financial Partners, Inc. pays a 0.9% dividend yield, covered by a 15% payout ratio with 1 years of growth, supplemented by a 0.2% buyback yield.
Pinnacle Financial Partners, Inc.'s current growth trajectory is Accelerating. The company achieved +15.3% 1Y revenue growth and -16.5% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 21 analysts, beating EPS expectations in 75% of recent quarters with a 1-quarter streak. The consensus price target represents a +22.1% change from current levels.
Investment risks for Pinnacle Financial Partners, Inc. include: -31.4% 1-year max drawdown. Volatility risk is characterized by a beta of 0.95x.
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.