A Look At TriCo Bancshares (TCBK) Valuation After ESOP Shelf Registration Filing

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TriCo Bancshares (TCBK) has filed a shelf registration for up to 1,200,000 shares for an employee stock ownership plan, totaling about $56.892 million. While the company’s valuation, based on a P/E of 12.5x, appears overvalued compared to the US banks average, a Discounted Cash Flow model suggests the shares might be significantly undervalued at $47.09, sitting about 37.9% below an estimated fair value of $75.87. This presents a mixed signal for investors, highlighting the need to consider both current earnings multiples and long-term cash flow projections.

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