EQBK
Equity Bancshares, Inc.
$48.97
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 5.8% below fair value
You pay
$48.97
Bear
$36.41
Fair
$52.01
Bull
$67.62
Bear
$36.41
-25.6%
ROTCE 4.0% → 0.30x TBV
Fair
$52.01
+6.2%
ROTCE 3.6% → 0.30x TBV
Bull
$67.62
+38.1%
ROTCE 4.2% → 0.30x TBV
Key Value Driver
ROTCE (3.6%) vs. cost of equity (8.6%)
Implied Market Multiple
1.61x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $54.25 from 5 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $52.01 per share.
Warnings
Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.
Return on equity (3.6%) is below the minimum investors require (8.6%). This means the bank is worth less than the net assets on its books.
Key Risks
- Book value quality matters as much as level — check loan loss reserves
- Interest rate sensitivity creates non-linear earnings surprises
- Insurance reserving is actuarial, not financial — errors emerge slowly