As of 2025-05-18, the Fair Value of Bank of N.T. Butterfield & Son Ltd (NTB) is 26.35 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 42.9 USD, the upside of Bank of N.T. Butterfield & Son Ltd is -38.6%.

Is NTB a good investment?

With the market price of 42.9 USD and our fair value calculation, Bank of N.T. Butterfield & Son Ltd (NTB) is not a good investment. Investing in NTB stocks now will result in a potential loss of 38.6%.

42.9 USD

Stock Price

26.35 USD

Fair Price

FAIR VALUE CALCULATION

NTB Fair Value

Peter Lynch's formula is:

NTB Fair Value

= Earnings Growth Rate x TTM EPS

NTB Fair Value

= 5.3 x 4.98

NTB Fair Value

= 26.35

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

	12-2020	12-2021	12-2022	12-2023	12-2024	5Y Avg
Net income	147.2	162.7	214	225.49	216.32	193
YoY growth	-16.9%	10.5%	31.5%	5.4%	-4.1%	5.3%

NTB Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
Bank of N.T. Butterfield & Son Ltd	1,868	5	26.35	-38.6%
Commonwealth Bank of Australia	283,919	5.8	29.19	-82.8%
Bank of Montreal	104,084	11.3	255.43	77.7%
U.S. Bancorp	70,075	4.3	21.44	-52.3%
Bank of Nova Scotia	89,642	5.4	27.02	-62.5%
Canadian Imperial Bank of Commerce	87,160	8	102.15	10.2%
National Bank of Canada	50,320	9.9	131.05	1.9%
Credicorp Ltd	19,493	58.3	395.17	91.3%
First National of Nebraska Inc	3,341	353.8	8,846.15	-31.2%
HFB Financial Corp	34	2.1	10.64	-63.2%

NTB Fair Value - Key Data

Market Cap (mil)	1,868
P/E	8.6x
Forward P/E	8x

EPS	4.98
Avg earnings growth rate	5.3%
TTM earnings	217

NTB 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.