FFIC
Flushing Financial Corporation
$15.87
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 9.0% below fair value
You pay
$15.87
Bear
$12.20
Fair
$17.43
Bull
$22.66
Bear
$12.20
-23.1%
ROTCE 4.0% → 0.30x TBV
Fair
$17.43
+9.8%
ROTCE 2.7% → 0.30x TBV
Bull
$22.66
+42.8%
ROTCE 3.1% → 0.30x TBV
Key Value Driver
ROTCE (2.7%) vs. cost of equity (8.5%)
Implied Market Multiple
0.76x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $16.75 from 10 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $17.43 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 (2.7%) is below the minimum investors require (8.5%). This means the bank is worth less than the net assets on its books.
Dividend-based valuation: $10.99 (38% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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