SFBS
ServisFirst Bancshares, Inc.
$77.41
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 3.7% above fair value
You pay
$77.41
Bear
$49.22
Fair
$74.63
Bull
$89.88
Bear
$49.22
-36.4%
ROTCE 11.3% → 1.39x TBV
Fair
$74.63
-3.6%
ROTCE 15.1% → 2.11x TBV
Bull
$89.88
+16.1%
ROTCE 17.3% → 2.54x TBV
Key Value Driver
ROTCE (15.1%) vs. cost of equity (9.2%)
Implied Market Multiple
2.3x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $90.00 from 6 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $74.63 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