SFBS
ServisFirst Bancshares, Inc.
$85.35
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 10.8% above fair value
You pay
$85.35
Bear
$50.82
Fair
$77.05
Bull
$92.79
Bear
$50.82
-40.5%
ROTCE 11.3% → 1.44x TBV
Fair
$77.05
-9.7%
ROTCE 15.1% → 2.19x TBV
Bull
$92.79
+8.7%
ROTCE 17.3% → 2.64x TBV
Key Value Driver
ROTCE (15.1%) vs. cost of equity (9.1%)
Implied Market Multiple
2.54x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $91.00 from 6 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $77.05 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.
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