First Hawaiian (FHB) Stock Looks Cheap On Fair Value Yet Fair On Earnings

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. First Hawaiian stock has returned 71.6% over the past three years, yet the current valuation picture is mixed, with the Excess Returns intrinsic value estimate suggesting about 22.3% upside while the broader checks do not point to an obvious bargain. A 71.6% gain over three years puts First Hawaiian among the stronger banking stocks in that window. The key issue is whether recent returns already reflect most of the value on offer. The planned all stock acquisition of TriCo Bancshares may support higher long term earnings power, but integration risk and regulatory approvals can affect how much of that potential value ultimately reaches shareholders. First Hawaiian screens as undervalued on 2 of 6 valuation checks. The low overall score suggests the stock leans closer to fairly priced than to a clear cut bargain across standard metrics (2/6 valuation checks). The issue now is whether First Hawaiian's current share price already discounts the expected benefits of the TriCo deal and recent share price gains, or if the intrinsic value estimate still points to meaningful upside from here. Find out why First Hawaiian's 16.6% return over the last year is lagging behind its peers. Is First Hawaiian Still Cheap on Excess Returns? The Excess Returns model evaluates how efficiently First Hawaiian converts its equity base into earnings above the required return for shareholders. For First Hawaiian, the model uses a Book Value of $22.75 per share and a Stable EPS of $2.57 per share, compared with a Cost of Equity of $2.06 per share. That gap translates into an Excess Return of $0.51 per share, supported by an Average Return on Equity of 9.94% and a projected Stable Book Value of $25.88 per share. Using these inputs together, the Excess Returns model estimates an intrinsic value of about $37.52 per share, which sits roughly 22.3% above the current share price and suggests the stock may be undervalued. Because the planned $2 billion all stock acquisition of TriCo Bancshares introduces integration and regulatory uncertainty, the discount can be interpreted as the market asking for a margin of safety before fully reflecting the enlarged bank's earnings power in the price. On this model, First Hawaiian stock appears undervalued, with the current price not fully reflecting the excess returns implied by its projected profitability and equity base. Our Excess Returns analysis suggests First Hawaiian is undervalued by 22.3%. Track this in your watchlist or portfolio, or discover 46 more high quality undervalued stocks. Story Continues FHB Discounted Cash Flow as at Jul 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for First Hawaiian. Does First Hawaiian Look Fairly Valued on Earnings? P/E is a useful yardstick for banks like First Hawaiian because earnings are a primary driver of shareholder value. First Hawaiian currently trades on a P/E of about 12.4x, which sits slightly above the peer average of 10.8x and is close to the broader banks industry average of 12.2x. The tailored fair P/E for First Hawaiian is estimated at 11.7x, which is only modestly below the current multiple. That small gap suggests the stock is priced close to what the model views as appropriate, given factors such as profitability, risk and size, rather than pointing to a clear discount or premium. The stock therefore does not screen as obviously cheap or expensive on earnings compared with similar banks. On the P/E yardstick, First Hawaiian appears roughly fairly valued, with its earnings multiple landing close to the level implied by its fundamentals and industry position.NasdaqGS:FHB P/E Ratio as at Jul 2026 See what the numbers say about this price — find out in our valuation breakdown. The First Hawaiian Narrative: What Would Justify Today's Price? Simply Wall St Narratives for First Hawaiian pick up where the valuation checks leave off by laying out the specific growth, margin and earnings paths that would need to play out for First Hawaiian's stock to be worth meaningfully more or less than it is today on the market. Instead of giving a single number, they unpack the future assumptions that number sits on, so you can see what needs to happen and monitor whether that story is still intact over time on the Community page. If you have a clear, number driven view on whether First Hawaiian's planned US$2b all stock acquisition of TriCo Bancshares ultimately delivers for shareholders, share a Narrative and spell out the earnings, margins and valuation path you think needs to play out. It is a chance to add your voice in the Simply Wall St community, set out a transparent case on First Hawaiian's stock, and then track how that thesis holds up as the combined bank reports results and the deal progresses toward closing. Do you think there's more to the story for First Hawaiian? Head over to our Community to see what others are saying! The Bottom Line For First Hawaiian, the Excess Returns intrinsic value estimate points to meaningful upside from here, while the P/E view implies the stock is priced about right relative to similar banks. That split reflects different focuses, with the intrinsic value model weighing the bank's ability to earn above its cost of equity and the market multiple reflecting current sentiment toward growth and risk. Broader valuation checks are relatively weak. The key question is whether the discount to intrinsic value is a genuine opportunity or simply compensation for integration and execution risk around the TriCo Bancshares acquisition. 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. Companies discussed in this article include FHB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments