I want to share a bank i've been following for some time.
SVB Financial Group, ticker SIVB, is a US based high-tech commercial bank in Silicon Valley. The scope of the bank is to invest in start-ups.
Currently it's traded at 188.93$ a share and I see a lot of value in this stock right now. For the last 10years the bank have been reporting earnings consistently and last year earned 18.11$ a share.
The shareholders return on equity is 16.36% which is above average. Price to book sits on 1.7 and the current P/E is 9.16 (the lowest according to the last 10 years). On average, the P/E is used to be 19.86, so is really below the value it's used to trade. They have a huge profit margin, 38.17% and this margin grown up 10.70% every year.
I really think this stock is well undervalued and according to their earnings, this stock should reach the price a share between 1935.54$ and 3667.92$ in the next 10 years.
What do you guys think?
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