Tompkins Financial (TMP) has drawn fresh investor attention after reporting higher second quarter and first half 2026 earnings, along with a 4.5% increase in its regular quarterly dividend to $0.70 per share.

At a share price of $99.89, Tompkins Financial has delivered a 30 day share price return of 6.8% and a year to date share price return of 37.76%. Its 1 year total shareholder return of 67.14% and 3 year total shareholder return of 97.92% point to strong compounding, with recent earnings, dividend and buyback announcements helping sustain positive momentum.

If Tompkins Financial's recent move has you looking for more ideas, this is a useful moment to scan the market for other established financials and growth stories using our 20 top founder-led companies

After Tompkins Financial's sharp rerating and richer dividend stream, the question now is whether investors are mostly harvesting past gains or still pricing in only part of the story as valuation comes into focus next.

Price to earnings of 8.2x: Is it justified?

Tompkins Financial closed at $99.89, while its current P/E of 8.2x sits below both its peer group average of 12.3x and the broader US Banks industry average of 12.1x. That combination suggests the market is valuing each dollar of current earnings at a lower level than many comparable banks.

The P/E ratio compares the share price to earnings per share and is a common way investors assess what they are paying for a company's profit stream. For a bank like Tompkins Financial, the P/E helps frame how the market views current profitability and the sustainability of those earnings based on recent results, such as the 120.7% earnings growth over the past year and current net profit margins of 39.3%.

On one hand, Tompkins Financial screens as "good value" on several checks, including trading at 2.7% below the SWS DCF model's estimate of future cash flow value of $102.70. On the other hand, the estimated fair P/E ratio of 7.8x is below the current 8.2x, which indicates investors are paying a modest premium to that statistical fair level. If market expectations shifted closer to this fair ratio, the valuation could move toward that lower multiple while still remaining above some absolute value checks.

Compared with the US Banks industry average P/E of 12.1x and the peer average of 12.3x, Tompkins Financial trades at a clear discount. Yet when set against the estimated fair P/E of 7.8x, the stock looks slightly expensive on this specific metric, even while appearing inexpensive relative to many banks. That contrast highlights how different valuation frameworks can point in different directions at the same time.

Explore the SWS fair ratio for Tompkins Financial.

Result: Price-to-earnings of 8.2x (ABOUT RIGHT)

However, Tompkins Financial still faces risks if revenue and net income continue to fall, or if the share price moves closer to the SWS fair P/E estimate.

Another view on Tompkins Financial's value

Price to earnings tells only part of the story for Tompkins Financial. Our DCF model estimates a future cash flow value of $102.70 per share, which is modestly above the current $99.89 price. That suggests the stock screens as slightly undervalued on this method.

DCF outputs are sensitive to assumptions about future cash flows, especially when analyst forecasts point to declining earnings and revenue over the next three years. The question for you is which signal matters more right now: the relative discount on the P/E side or the small gap in the DCF result.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Tompkins Financial 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 51 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 Tompkins Financial showing both appealing metrics and clear areas of concern, it makes sense to look at the underlying data yourself and decide quickly where you stand. To see how the positives and negatives stack up side by side, review the 3 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Tompkins Financial?

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• Spot potential mispricings quickly by scanning companies that combine quality fundamentals with attractive valuations using our 51 high quality undervalued stocks.
• Strengthen your income stream by reviewing businesses that aim to sustain higher yields and reliable payouts through the 9 dividend fortresses.
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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.