BWFG
Bankwell Financial Group Inc
Price:  
37.84 
USD
Volume:  
15,607
United States | Banks

BWFG Fair Value

39.8 %
Upside

What is the fair value of BWFG?

As of 2025-07-12, the Fair Value of Bankwell Financial Group Inc (BWFG) is 52.92 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 37.84 USD, the upside of Bankwell Financial Group Inc is 39.8%.

Is BWFG a good investment?

With the market price of 37.84 USD and our fair value calculation, Bankwell Financial Group Inc (BWFG) is a good investment. Investing in BWFG stocks now will result in a potential gain of 39.8%.

37.84 USD
Stock Price
52.92 USD
Fair Price
FAIR VALUE CALCULATION

BWFG Fair Value

Peter Lynch's formula is:

BWFG Fair Value
= Earnings Growth Rate x TTM EPS
BWFG Fair Value
= 25 x 2.12
BWFG Fair Value
= 52.92

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income5.926.5937.4336.669.7723
YoY growth-67.6%350.7%40.8%-2%-73.4%49.7%

BWFG Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Columbia Banking System Inc5,2932.459.02134.4%
Pacific Premier Bancorp Inc2,2161.538.0766.7%
S&T Bancorp Inc1,5243.587.03118.9%
Univest Financial Corp9332.722.61-30%
Southern First Bancshares Inc3262.220.09-49.7%
LCNB Corp2191.15.71-63%
Pacific Mercantile Bancorp2110.73.58-61.9%
National Bankshares Inc1891.46.83-77%
Bank of South Carolina800.94.29-64.2%

BWFG Fair Value - Key Data

Market Cap (mil)298
P/E17.9x
Forward P/E23.6x
EPS2.12
Avg earnings growth rate49.7%
TTM earnings17

BWFG Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.