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How Did PrivateBancorp Perform Compared to Its Peers?

US Equity Market Update for October 13, 2015

(Continued from Prior Part)

PrivateBancorp and its peers

An analysis of PrivateBancorp’s income statement in 3Q15 follows:

  • The EPS (earnings per share) of PrivateBancorp (PVTB), Commerce Bancshares (CBSH) and Wintrust Financial (WTFC) are $0.57, $0.66 and $0.69, respectively.

An analysis of PrivateBancorp’s valuation follows:

  • The PE (price-to-earnings) ratios of PrivateBancorp, Commerce Bancshares, Wintrust Financial, MB Financial (MBFI), and First Midwest Bancorp (FMBI) are 19.4x, 17.2x, 17.4x, 22.1x, and 18.2x, respectively.

  • The PBV (price-to-book value) ratios of PrivateBancorp, Commerce Bancshares, Wintrust Financial, MB Financial, and First Midwest Bancorp are 2.0x, 2.0x, 1.3x, 1.2x, and 1.2x, respectively.

As a result, PrivateBancorp outperformed its peers based on the PE ratio and PBV ratio.

ETFs that invest in PrivateBancorp

The PowerShares KBW Regional Banking Portfolio (KBWR) invests 2.0% of its holdings in PrivateBancorp. KBWR tracks an equal-weighted index that’s focused exclusively on US regional banking firms.

The PowerShares S&P SmallCap Financials Portfolio (PSCF) invests 1.8% of its holdings in PrivateBancorp. PSCF tracks a market-cap-weighted index of financial services companies in the US small-cap market.

The KBE Bank Fund (KBE) invests 1.8% of its holdings in PrivateBancorp. KBE tracks an equal-weighted index of US banking firms.

Comparing PrivateBancorp and its ETFs

An analysis of PrivateBancorp’s price movement follows:

  • The YTD (year-to-date) price movements of PrivateBancorp, KBWR, PSCF, and KBE are 21.6%, 6.1%, 2.3% and 3.2%, respectively.

An analysis of PrivateBancorp’s valuation follows:

  • The PE ratios of PrivateBancorp, KBWR, PSCF, and KBE are 19.4x, 18.9x, 19.2x, and 14.0x, respectively.

  • The PBV ratios of PrivateBancorp KBWR, PSCF, and KBE are 2.0x, 1.4x, 1.6x, and 1.2x, respectively.

PrivateBancorp outperformed its ETFs based on the price movement, PE ratio, and PBV ratio.

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