EQBK
Equity Bancshares, Inc.
$45.97
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 11.0% below fair value
You pay
$45.97
Bear
$36.17
Fair
$51.66
Bull
$67.16
Bear
$36.17
-21.3%
ROTCE 4.0% → 0.30x TBV
Fair
$51.66
+12.4%
ROTCE 3.6% → 0.30x TBV
Bull
$67.16
+46.1%
ROTCE 4.2% → 0.30x TBV
Key Value Driver
ROTCE (3.6%) vs. cost of equity (8.6%)
Implied Market Multiple
1.51x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $52.50 from 5 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $51.66 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