QCRH
QCR Holdings, Inc.
$90.88
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 21.0% below fair value
You pay
$90.88
Bear
$73.72
Fair
$115.01
Bull
$139.78
Bear
$73.72
-18.9%
ROTCE 9.9% → 1.29x TBV
Fair
$115.01
+26.5%
ROTCE 13.2% → 2.02x TBV
Bull
$139.78
+53.8%
ROTCE 15.1% → 2.45x TBV
Key Value Driver
ROTCE (13.2%) vs. cost of equity (8.5%)
Implied Market Multiple
1.55x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $103.00 from 8 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $115.01 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.
Dividend-based valuation: $5.33 (95% 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