EQBK
Equity Bancshares, Inc.
$48.88
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 5.0% below fair value
You pay
$48.88
Bear
$36.02
Fair
$51.45
Bull
$66.89
Bear
$36.02
-26.3%
ROTCE 4.0% → 0.30x TBV
Fair
$51.45
+5.3%
ROTCE 3.6% → 0.30x TBV
Bull
$66.89
+36.8%
ROTCE 4.2% → 0.30x TBV
Adjust Assumptions
3.6%
8.7%
Key Value Driver
ROTCE (3.6%) vs. cost of equity (8.7%)
Implied Market Multiple
1.6x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (6 analysts)
$54.20
Divergence from AlphaVal
5%
Summary
With ROTCE of 3.6% vs. 8.7% cost of equity, fair P/TBV is 0.30x on $30.51 tangible book, implying $51.45 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 (8.7%). 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