Nicolet Bankshares (NIC) released first quarter 2026 results that show higher net interest income alongside lower net income and earnings per share, rising net loan charge-offs, an increased quarterly dividend, and continued activity under its long running share repurchase plan.

At a share price of $148.58, the stock has a year to date share price return of 23.31%, while the 1 year total shareholder return of 27.02% sits against a very large 3 year total shareholder return. This suggests momentum has been building over time despite recent earnings pressure and higher net loan charge offs.

If these banking results have you curious about what else is setting the pace in financial markets, it could be worth broadening your search with 18 top founder-led companies

With earnings under pressure, a higher dividend, a long running buyback and an intrinsic value estimate pointing to a discount, the real question is whether Nicolet is still undervalued or if the market is already pricing in future growth.

Preferred P/E of 23.6x: Is It Justified?

Nicolet Bankshares trades on a P/E of 23.6x, which sits alongside a last close of $148.58 and points to a richer valuation than many bank peers.

The P/E ratio compares the current share price to earnings per share, so a higher multiple often reflects the market paying more for each dollar of current earnings. For a regional bank focused on commercial and consumer lending, cash management, and wealth services across Wisconsin, Michigan, and Minnesota, that raises a clear question about what kind of earnings profile investors think they are paying for.

Compared with the US Banks industry average P/E of 11.5x, Nicolet Bankshares trades at more than double the sector level. This indicates investors are currently willing to ascribe a premium to its earnings. The peer average P/E of 12.9x, together with an estimated fair P/E of 23.5x that is almost identical to the current 23.6x, suggests the market is already pricing in a level of earnings power that lines up closely with this fair ratio, rather than leaving a large valuation gap either way.

Result: Price-to-earnings of 23.6x (OVERVALUED)

However, rising net loan charge offs and earnings pressure could challenge the premium P/E, especially if credit quality or profitability trends weaken further from here.

Another View: DCF Points the Other Way

While the 23.6x P/E suggests a rich price, the SWS DCF model tells a very different story. With the share price at $148.58 and an estimated future cash flow value of $254.91, the stock is indicated as trading at a 41.7% discount. This raises the question: is this premium multiple actually masking a DCF based opportunity?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Nicolet Bankshares for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 53 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With sentiment in this review pulling in different directions, now is a good time to look through the numbers yourself and decide what really stands out. Then weigh those signals against the 3 key rewards and 2 important warning signs

Looking for more investment ideas?

If Nicolet has sharpened your focus, now is the moment to scan a wider field of opportunities before the next round of market moves leaves you behind.

• Target potential mispricing by reviewing companies that screen as high quality and undervalued with 53 high quality undervalued stocks.
• Strengthen your income focus by checking out businesses that appear as resilient 5%+ yield payers through 14 dividend fortresses.
• Prioritize resilience by hunting for companies that show lower risk scores using the 72 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.