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Preferred BankFRA:1IU +0.55%69 EV-to-FCF is 5.18 as of Jul. 16, 2026, which is 48% above its 10-year median of 3.51. GuruFocus rates FRA:1IU with a GF Score™ of 69/100 and a GF Value™ of €78.08. The stock has 5 warning signs investors should review. Among 1,193 Banks companies, Preferred Bank ranks better than 56.58% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Preferred Bank's Enterprise Value is €742.1 Mil.
Preferred Bank's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was €143.3 Mil. Therefore, Preferred Bank's EV-to-FCF for today is 5.18.
The historical rank and industry rank for Preferred Bank's EV-to-FCF or its related term are showing as below:
FRA:1IU'
s EV-to-FCF Range Over the Past 10 Years
Min: -1.96 Med: 3.51 Max: 13.43
Current: 5.05
During the past 13 years, the highest EV-to-FCF of Preferred Bank was 13.43. The lowest was -1.96. And the median was 3.51.
FRA:1IU's EV-to-FCF is ranked better than 56.58% of 1193
companies
in the Banks industry
Industry Median: 6.65
vs FRA:1IU: 5.05
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Preferred Bank's PE Ratio (TTM) for today is calculated as:
Preferred Bank's share price for today is €92.00.
Preferred Bank's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €9.210.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Preferred Bank EV-to-FCF Related Terms
Preferred Bank EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Preferred Bank's EV-to-FCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Regional subindustry, Preferred Bank's EV-to-FCF, along with its competitors' market caps and EV-to-FCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Preferred Bank EV-to-FCF vs Banks Industry
For the Banks industry and Financial Services sector, Preferred Bank's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Preferred Bank's EV-to-FCF falls into.
Preferred Bank's current Enterprise Value is €742.1 Mil.
Preferred Bank's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €143.3 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Preferred Bank (FRA:1IU) has a EV-to-FCF of 5.18 as of Jul. 16, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Preferred Bank and its competitors. This is 48% above median its historical median of 3.51. According to the industry distribution chart, Preferred Bank ranks #518 out of 1193 companies in the Banks industry, placing it in the top 43.4%.
Is Preferred Bank's EV-to-FCF too high?
Preferred Bank's current EV-to-FCF of 5.18 is 48% above median its 10-year median of 3.51. The Banks industry median EV-to-FCF is 6.65. Preferred Bank's value of 5.18 is 22.1% below this industry median. Based on the distribution chart, Preferred Bank ranks #518 out of 1193 companies in the Banks industry, which is above the industry midpoint. Overall, Preferred Bank has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Preferred Bank's EV-to-FCF compare to MCB and UVSP?
According to the Banks industry distribution chart, Preferred Bank ranks #518 out of 1193 companies for EV-to-FCF. This puts Preferred Bank in the upper half of its industry. The industry median EV-to-FCF is 6.65. Preferred Bank's value of 5.18 is 22.1% below this benchmark. While the company's 10-year median is 3.51 vs. the industry median of 6.65, Preferred Bank has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for a Banks company?
The median EV-to-FCF among Banks companies is 6.65, based on 1,193 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Preferred Bank's current EV-to-FCF of 5.18 is 22.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Preferred Bank and its competitors. For the Banks industry, the median EV-to-FCF is 6.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Preferred Bank's current EV-to-FCF is 5.18, which is 48% above median its own 10-year median of 3.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Preferred Bank stock overvalued right now?
Preferred Bank (FRA:1IU) has a current EV-to-FCF of 5.18. The stock's GF Value™ is €78.08, compared to a current price of €92.00 — trading 17.8% above its estimated fair value. The current EV-to-FCF is 5.18, which is 48% above median its 10-year median of 3.51 and 22.1% below the Banks industry median of 6.65. Preferred Bank's overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Preferred Bank (FRA:1IU), the current EV-to-FCF is 5.18 as of Jul. 16, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Preferred Bank (FRA:1IU) Overvalued in 2026?
Based on GuruFocus' analysis, Preferred Bank stock appears to be overvalued.
The current stock price of €92.00 is trading 17.8% above its estimated GF Value™ of €78.08.
Key valuation signals for FRA:1IU:
EV-to-FCF: 5.18 (48% above median its 10-year median of 3.51)
GF Value™: €78.08 vs. price of €92.00 (17.8% above fair value)
Industry Position: 22.1% below the Banks median (#518 of 1193)
No single metric tells the full story. See the FRA:1IU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Preferred Bank is a commercial bank located in California. Its products and services are divided into Personal Banking, Business Banking, and Commercial Banking, which include Checking accounts, Savings accounts, CDs, Loans and Credit, Electronic banking, and Treasury Management. It provides personalized deposit services, real estate finance, commercial loans, and trade finance credit facilities to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high-net-worth individuals.
69GF Score
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EV-to-FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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