WaFd (WAFD) is back in focus after detailing leadership plans for its pending combination with EverBank Financial Corp, with Greg Seibly set to become chief executive and Brent Beardall taking the president role.

For investors watching the tape, WaFd’s share price has eased in recent weeks, with a 30-day share price return down 11.24% and a 90-day share price return down 13.34%. The year-to-date share price return is slightly positive at 0.50%, while longer term total shareholder returns of 6.58% over one year and 39.25% over three years suggest the recent weakness comes after a solid multi year run.

Capitalize on the leadership shake-up and merger story at WaFd by comparing it with a curated group of regional lenders in the list of solid balance sheet and fundamentals (23 results).

WaFd now trades below both analyst targets and some intrinsic value estimates after this pullback. Is that a sensible discount given merger and leadership risk, or is the market leaning too hard on caution?

Most Popular Narrative: 13% Undervalued

Against WaFd’s last close at $32.29, the most widely followed narrative pegs fair value at $37.25, which leaves the stock sitting at a double digit discount based on those assumptions and a discount rate of 8.12%.

The Build 2030 shift toward true commercial banking and small business relationships, including reorganized business, corporate and commercial real estate banking teams, positions WaFd to grow higher yielding C&I and CRE loans, supporting faster revenue and earnings growth.

Expansion into SBA 504 and 7(a) lending with delegated and preferred lender status, coupled with a growing loan pipeline across multifamily, C&I and construction, supports sustained mid single to low double digit growth in the active loan book, driving revenue and fee income.

What's behind 3 investors see WaFd as 13% undervalued.

Result: Fair Value of $37.25 (UNDERVALUED)

Still, the WaFd story carries real tension around integration risk from the US$3.9b EverBank reverse merger and the legal scrutiny of whether the deal terms favor existing shareholders.

Find out about the key risks to this WaFd narrative.

Next Steps

If the mixed sentiment around WaFd leaves you uncertain, act promptly, review the underlying data, and carefully weigh the 5 key rewards.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.