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Cullen/Frost Bankers, Inc.

CFR Financial Banks Regional

Cullen/Frost Bankers, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $2.9 billion, up 2.46% from fiscal 2024.

Revenue
+2.95%
EPS
+6.37%
Free cash flow
+21.4%
Total debt
+0.10%

Quarter to September 2026, against a year earlier

156.62 3.07 −1.92%
Market cap
$9.7B
P/E
14.6×
Fwd P/E
14.2×
Dividend yield
2.59%
F-score
7/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
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Cullen/Frost Bankers, Inc. (CFR) valuation and DCF model

What the price implies · reverse DCF

At $156.62 the price implies 14.2% a year of dividend growth, at a 9.0% cost of equity.

The dividend a share grew 6.7% a year over the last ten years, 6.8% over the last five. The price asks for about twice its ten-year rate. Return on equity averaged 13.2% over ten years; the price implies 18.4% for good.

In December 2017 the price assumed 15.7% a year; Cullen/Frost Bankers, Inc. went on to grow the dividend a share −17.8% a year to FY2025.

Price implies
14.2%
Last 5 years, reported
6.8%
Last 10 years, reported
6.7%

The headline discounts the last twelve months’ the dividend a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
14.2% a year for ten years
$156.62
today’s price
Its base case
6.7% a year for five years, then 4.0%
$81.22
48.1% below today’s price

Both are growth in the dividend a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Cullen/Frost Bankers, Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Dividends
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in the dividend. It usually slows as the company matures.

Today’s price implies the dividend a share growing 14.2% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against Cullen/Frost Bankers, Inc.’s own cost of capital: risk-free 4.3% + beta 0.51 × equity premium 4.5% = 6.6% cost of equity; weighted, 6.6%.

Use 6.6%
Base case value per share $81.22 ten years discounted, and what follows
Current price $156.62 market price per share
Below today’s price 48.1% downside at the base case’s assumptions

How we got there$35.26 10 years of dividends+$45.96 terminal value=$81.22 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Banks Regional).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 14.57× 13.82× 14.86× 2% below 12.02× 21% above
P/FCF 16.54× 25.00× 18.85× 12% below 10.60× 56% above
P/B 2.54× 2.28× 1.99× 28% above 1.23× 106% above
EV/Sales — 1.34× 1.34× — 3.90× —
P/E P/FCF P/B EV/Sales
12.06×14.19×16.31×18.43×10Y avg 14.86×2017201820192020202120222023202420252026

CFR trades at 14.57× P/E, against a 10-year average of 14.86× (range 11.96×–18.57×). That is cheaper than 56% of the last 9 year-end readings; re-rating to the average implies $159.79 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.