SFBS
ServisFirst Bancshares, Inc.
$43.20
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Overvalued
Trading 16.6% above fair value
You pay
$43.20
Bear
$24.45
Fair
$37.06
Bull
$44.63
Bear
$24.45
-43.4%
ROTCE 11.3% → 1.46x TBV
Fair
$37.06
-14.2%
ROTCE 15.1% → 2.21x TBV
Bull
$44.63
+3.3%
ROTCE 17.3% → 2.66x TBV
Adjust Assumptions
15.1%
9.0%
Key Value Driver
ROTCE (15.1%) vs. cost of equity (9.0%)
Implied Market Multiple
2.57x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (6 analysts)
$94.00
Divergence from AlphaVal
61%
Summary
With ROTCE of 15.1% vs. 9.0% cost of equity, fair P/TBV is 2.21x on $16.80 tangible book, implying $37.06 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.
Wall Street's average price target is $94.00 (from 6 analysts). Our estimate is 61% below the consensus -- consider that gap carefully.
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