SVB Financial Group ($SIVB) Possible Buy to $256 Confident Investor Rating: Good
| Company name | SVB Financial Group |
| Stock ticker | SIVB |
| Live stock price | [stckqut]SIVB[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $337.17 |
| Target stock price (averages with growth) | $195.23 |
| Target stock price (averages with no growth) | $195.69 |
| Target stock price (manual assumptions) | $335.77 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/SIVB
SVB Financial Group (SVB Financial), incorporated on March 22, 1999, is a diversified financial services company, as well as a bank holding and a financial holding company. The Company operates through three segments: Global Commercial Bank, SVB Private Bank and SVB Capital. The Company, through its subsidiaries and divisions, offers a range of banking and financial products and services to clients across the United States. The Company offers services in the technology, life science/healthcare, private equity/venture capital and wine industries.
The Company offers commercial and private banking products and services through its principal subsidiary, Silicon Valley Bank (the Bank), which is a California state-chartered bank. The Bank and its subsidiaries, also offer asset management, private wealth management, brokerage and other investment services. Through SVB Financial’s other subsidiaries and divisions, it also offers non-banking products and services, such as funds management and business valuation services. Its investment securities are categorized as available-for-sale and held-to-maturity. As of December 31, 2016, the Company’s investment securities amounted to $21.7 billion. The Company’s loan portfolio includes commercial loans, real estate secured loans, construction loans and consumer loans. As of December 31, 2016, the Company’s total loans, net of unearned income, amounted to $19.9 billion. As of December 31, 2016, The Company’s total deposits amounted to $39 billion
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in SVB Financial Group as long as the indicators that I describe in my book The Confident Investor are favorable.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of SVB Financial Group calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $218.27
- Growth: 0.2
- Current EPS (TTM): $18.11
- P/E: 12
- Future EPS Calc: $45.06
- Future Stock Price Calc: $540.76
- Target stock price: $335.77
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I hope that this makes you a Confident Investor.