SFBS
ServisFirst Bancshares, Inc.
$38.07
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 7.7% above fair value
You pay
$38.07
Bear
$24.75
Fair
$35.36
Bull
$45.97
Bear
$24.75
-35.0%
ROTCE 11.3% → 1.38x TBV
Fair
$35.36
-7.1%
ROTCE 15.1% → 2.09x TBV
Bull
$45.97
+20.7%
ROTCE 17.3% → 2.52x TBV
Adjust Assumptions
15.1%
9.3%
Key Value Driver
ROTCE (15.1%) vs. cost of equity (9.3%)
Implied Market Multiple
2.27x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (6 analysts)
$45.50
Divergence from AlphaVal
22%
Summary
With ROTCE of 15.1% vs. 9.3% cost of equity, fair P/TBV is 2.09x on $16.80 tangible book, implying $35.36 per share. DDM cross-check: $87.66.
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: $87.66 (148% above 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