What is Webster Financial Corp worth?
With the base-case assumptions below, a discounted cash flow model on Webster Financial Corp's reported free cash flow gives $213.72 per share. The share price was $77.57 on August 19, 2026, 64% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 10.0% | 10.0% | $134.57 | +73% |
| Base | 15.0% | 9.0% | $213.72 | +176% |
| Bull | 20.0% | 8.0% | $361.10 | +366% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $273.64 | $292.33 | $315.17 | $343.71 | $380.41 |
| 8.0% | $228.63 | $240.74 | $255.06 | $272.25 | $293.25 |
| 9.0% | $195.88 | $204.16 | $213.72 | $224.87 | $238.05 |
| 10.0% | $171.04 | $176.93 | $183.61 | $191.24 | $200.04 |
| 11.0% | $151.61 | $155.93 | $160.75 | $166.19 | $172.34 |
Where the presets come from
Base: years 1 to 5 grow at Webster Financial Corp's revenue growth rate over the last 5 fiscal years (70.9% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions